LG can still make money from its dead mobile business

In April 2021, LG officially announced the cessation of sales of mobile phone products. However, LG has not completely disappeared from the smartphone market. The Korean company is expected to license many patents related to 5G and other wireless technologies.

LG can still profit from dead mobile business - Photo 1.

According to Korean newspaper The Elec, LG is considering licensing some of the 20,000 patents it acquired before closing its mobile business. A source from The Elec revealed that LG is planning to set up a subsidiary to handle licensing deals for different smartphone brands.

LG may also sell some of these patents to interested companies. A few months after LG pulled out of the smartphone business, Samsung said to be eyeing LG’s 5G patent portfolio.

Since the company’s smartphone business is no longer active, sharing some of that technology with older competitors won’t hurt but will also bring in revenue.

The reason for granting or selling LG patents is related to the extremely high patent maintenance costs, estimated at 20 billion won (~370 billion VND) per year.

LG has licensed a number of patents related to cellular technology and auto components through Avanci, an independent intermediary.

However, with LG currently focusing on smart home products, the company is likely to retain some patents it deems useful in the future.

Reference: AndroidCentral

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