The office will be headed by Twitter executive Peter Greenberger.
Xiaomi said in a statement that "it isn't easy" to build up a patent portfolio as a start-up company, but it aims to have filed 8,000 applications by 2016.
Xiaomi Inc said it had upgraded its operating system to ensure users knew it was collecting data from their address books after a report by a computer security firm said the Chinese budgetsmartphone maker was taking personal data without permission.
Before it backtracked, Twitter had said Thursday that the change was meant to protect victims of harassment who wanted to filter out abusive messages but feared that the act of blocking a user would prompt retaliation.
The valuation was more conservative than the $15 billion some analysts had expected for the social media phenomenon, potentially attracting investors who might consider the money-losing company's listing price a better deal, with room to rise.
Among the biggest winners of a successful IPO would be co-founder Evan Williams with a 12 per cent stake.
The eight-year-old online messaging service gave potential investors their first glance at its financials on Thursday when it publicly filed its IPO documents, setting the stage for one of the most-anticipated debuts in over a year.
He replaces Mark Pincus, the founder of the company.
Google's successful bid came after Apple Inc had expressed interest in buying Wavii to incorporate the startup's natural language technology into Siri, Apple's voice-activated personal assistant feature, said the person, who declined to be named because the deal has not been publicly announced.
The deal values the firm at more than $9 billion.
Twitter's new release came days after Instagram unexpectedly said it would no longer allow Twitter to display Instagram photos.