US patent leader IBM plans to donate 500 patents for free use by software developers, marking a major shift of intellectual property strategy for the world's top computer maker and a challenge to the high-tech industry.

Jim Stallings, IBM's vice-president in charge of intellectual property, said in an interview the move was meant to encourage other companies to unlock patent portfolios to spur technological innovation.

"This represents by far the largest pledge of patents in US history," IBM said yesterday. "You can use them and grow and innovate (and)... to build something new," Mr Stallings added in remarks aimed at developers.

As the leading provider of computer services, IBM also stands to benefit from helping other companies make use of new technology developed under the open licensing programme.

The policy change for IBM, which over the past decade has stood out as a leader among global companies seeking to reap greater profits from its patent portfolio, allows the company to continue to receive royalties from thousands of patents it holds on everything from microchips to supercomputers.

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