Samsung and SK Hynix signed cross licensing agreement

Samsung Electronics and SK Hynix singed patent cross licensing agreement related to semiconductor on July 3rd.  Through the licensing agreement, both companies are able to increase their competitiveness by sharing patented technologies and handle the patent infringement problems. Currently, Samsung has 35,000 chip-related patents and SK Hynix has 21,000 patents.  The two companies did not provide details of the contract, though.  It seems like they are preparing massive patent lawsuits against global NPEs.  In addition, they can prevent the inevitable patent infringements among Korean domestic IP companies.       

Before their licensing agreement, both companies were locked into a bitter patent disputes with US chipmaking company, Rambus.  Prior to this agreement, Samsung Electronics made a patent licensing agreement with Rambus in early 2010, paid 9 billion dollars for the agreement.  SK Hynix had a patent disputes with Rambus from 2000 to last June, 2013 in the US, Germany, France and UK.  As a result, SK Hynix had to pay 240 million dollars loyalty to Rambus for 5 years

©Samsung.com

Through this cross licensing agreement, Samsung and SK Hynix will be able to increase its competitiveness.  Both companies will be able to increase their market share in the semiconductor market without worries of patent disputes.  Actually, cross licensing agreement between companies in Japan is not that anew.  Many Japanese companies are sharing patents among Japanese companies and dealing patent lawsuits against foreign companies with those companies with agreement.  Therefore, Japanese companies could have better position during the worldwide patent litigations.  The licensing agreement between companies would be a great method that counters the patent lawsuit against NPEs.      

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