LG Electronics' patent management

With the emergence of the 4th Industrial Revolution, the importance of patents is emerging as new technologies as the core item. LG Electronics is also building a strong patent portfolio through continuous research and development to realize patent management. According to the business report, as of the end of 2019, the total number of domestic & foreign patents was 86,527, which is an increase of 4,457 from 82,070 a year ago. They’re actively responding to infringement litigation. In the meantime, it is a contrary movement to the quiet proceedings that had not disclosed before.

   Prevention of patent infringement by litigation

On the 19th, LG Electronics won the patent infringement lawsuit related to ice-making of refrigerator doors against electronics companies Beko and Grundig. By this lawsuit, the products from the German companies won’t be sold in Germany. In addition to this, LG Electronics is actively in the process of patent litigation in various technology fields, such as Beko's steam technology, telecommunication technology with TCL of China and BLU of US and TV technology with Hisense of China. It’s seen as a warning message to prevent patent infringement of other competitors through aggressive litigation.

🔺 wipsglobal.com
LG Electronics' KR patent, 10-1728735,
"A refrigerator comprising an ice making device"

   Increased loyalty revenue through licensing agreement

As a model for generating revenue through patents, LG Electronics chose a licensing strategy. This is possible because LG Electronics is the world-class in major technology fields such as telecommunication, TV etc. They’ve signed an LTE standard patent license agreement with BLU, which infringed on telecommunication technology, and in June 2019, also signed a core patent licensing with GE Appliances related to the refrigerator, which is a premium product, ice water purifier. LG Electronics' patent royalties are increasing rapidly. It increased by 72% compared to the previous year to USD394 bil. in 2019 from USD228 bil. in 2018.

🔺 pixabay.com

   LG Electronics Patent Center, the center of patent management

LG Electronics Patent Center leads the both the patent litigation and licensing strategy to achieve patent management. As the head of the center is a vice president-level executive, patent center is also recognized as a core department within the company. Thanks to this, in the first quarter of this year, approx.. USD900bil., which is 7.4% of revenue, was used for research and development.

   According to the World Intellectual Property Organization (WIPO), LG Electronics also ranked 8th in the world in corporate patent rankings in 2018. There’s keen interest on how much more LG Electronics' patent management will achieve.