LG is struggling with the phone business, Samsung still “condescends” because of this

According to a report from KoreaTimes, a source close to Samsung said that many NPE companies have approached LG Electronics to be able to buy back its 5G mobile patents. Unlike LG’s “fading” technology products, the company’s mobile patents are still considered highly competitive. This has led many companies to seek and buy their patents, including Samsung.

Samsung seeks to buy LG patents

For those who don’t know, NPEs are companies with patents or patent rights. These companies do not manufacture the patented technology, but make a profit by licensing it to other companies. According to the source, LG currently holds patents on LTE and 5G technologies worth about US$901 million. In total, the old smartphone maker holds about 24,000 essential patents related to LTE and 5G standards.

Furthermore, LG company also ranked first in global 4G standard patents for 4 consecutive years from 2012 to 2016. Thus, after withdrawing from the mobile market operated by mobile business unit At a loss, it is not surprising that other companies want to buy back LG’s patents.

The source said that NPEs from China and the US are bidding to own LG Electronics’ patents. These intellectual property are divided to sell individually, suitable for each industry and each product. In addition, LG Electronics also wants to keep a number of patents related to home appliances or electric vehicle technology that it is redirecting investment after leaving the mobile segment.

Prior to this news, an LG Electronics official also released a statement saying: “We have not been able to confirm the above information, and we are currently reviewing the use of our network patents in other areas such as IoT or self-driving car technology”.

Although LG Electronics has a large number of patents, this does not mean that they are readily traded in the market. Because the company will have to adjust the price difference with its potential buyers.

Earlier, LG Electronics discussed selling its mobile phone “hardware” with Vietnam’s Vingroup, however, negotiations broke down because of the huge price gap. Vingroup hopes to buy LG’s factories in Brazil and Vietnam for several million dollars, while the South Korean conglomerate wants larger numbers. On April 5, the technology giant announced that it will stop making mobile phones as of July 31.