A mobile phone software development company in Tokyo has launched two development subsidiaries operated by students at universities in Sendai and Kyoto.

K Laboratory Co. (K Lab) said the scheme gives students the chance to develop business skills and gives K Lab the right to software developed by the students.

K Lab said it intends to launch similar companies in Kobe, Nagoya and Fukui, the officials said.

K Lab pays the operation cost of the subsidiaries, including office rent and computer hardware, and the students are expected to conduct market research, planning and developing of software, company officials said.

The students work at times to suit themselves and many of them are paid on the basis of performance, while some are paid regular salaries, according to K Lab.

One of the subsidiaries, Tohoku Lab, opened in April in a condominium near a Tohoku University campus in Sendai and is operated by 27 students of Tohoku University and Miyagi University, which is located in the town of Daiwa, next to the Miyagi Prefecture capital.

The company has developed more than 10 items of software, including an online chat service for mobile phones.

Shutaro Hanzawa, 22, a student at Miyagi University and the representative of Tohoku Lab, said, "Although this business often suffers from a shortage of engineers, we students can use our time as much as we like and develop perfect services for customers."

K Lab said it intends to support venture companies set up by the students after they graduate, the officials said.