LG plans to make money by selling its smartphone patents
After several years of trying to compete with big companies like Samsung and Apple in the smartphone market, LG finally gave up and joined the mobile phone said goodbye. The company called the smartphone business environment “too competitive” and announced that it plans to spend its energy in other fields from now on. It has performed well in the market and this shows that this decision was made in the right direction. LG’s exit from the smartphone industry left many unused patents for this company. These patents include about 20,000 patents related to 4G and 5G networks and other wireless technologies. The company can no longer use these patented technologies in its products, and it is estimated that only the “maintenance” of these patents will cost LG about $16 million annually.
According to Digitaltrends, this astronomical cost of maintenance forces LG’s top management to license the registered patents to other Hand over smartphone brands. LG is currently planning to establish a spin-off company to transfer these patents and assign them to any company or former competitor that wishes. LG also mentioned selling some of its patents to interested companies; These companies are required to pay compensation to LG employees who were involved in filing the patents.
- LG officially said goodbye to the world of smartphones
Some of these patents will remain with LG as much as possible due to their great importance. In fact, LG has already mentioned that it plans to use some of its mobile phone patents to develop smart appliances and internet products. Use objects. The Korean company announced late last year that some of these patents will help accelerate the development of auto parts. LG’s decision to license or sell its patents is interesting because several companies, including Volkswagen approached to buy the same patents a year ago, right after the company’s mobile business was shut down. Now it has to be seen whether LG will consider these companies to sell its unused patents and whether these companies are still interested in buying these patents or not.