After finishing its mobile phone trade in 2021, LG Electronics has discovered a profitable income movement via patent licensing. The corporate gained considerable bills from Apple and different undisclosed firms in 2022. In a transfer to praise its workers for his or her contributions, LG has been distributing a portion of those income, with some people receiving over $1 million every.
LG’s Lucrative Patent Licensing Deals
In 2022, LG used to be paid licensing charges for patents associated with its former cell department. While the corporate bought its telephone trade, it persisted to have the benefit of its highbrow belongings portfolio. Among its most sensible paying purchasers, Apple sticks out, having paid LG greater than part one thousand million greenbacks. This considerable cost has now trickled right down to LG workers, who’ve shared within the providence, consistent with a report by means of The Elec.
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The observe of rewarding workers with such huge sums seems to align with South Korea’s broader technique of marketing innovation inside of its company sector. The govt encourages firms to extend patent filings by means of offering incentives, a coverage that turns out to have paid off for LG. The corporate’s transfer from production telephones to licensing patents displays a shift within the tech trade, the place highbrow belongings has turn into a key asset.
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From Phones to Patents
While LG’s telephones by no means reached the similar marketplace dominance as competitors like Apple or Samsung, the corporate used to be in a position to care for a powerful presence within the Android marketplace, in particular in america. However, after suffering to translate innovation into gross sales, LG exited the aggressive telephone marketplace. It then concerned about monetizing its patents, basically promoting them to Chinese corporations like Vivo. These firms, wanting patents to keep away from felony battles, bought LG’s highbrow belongings to strengthen their very own portfolios.
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The patent licensing type has confirmed to be a profitable trade for LG, and its workers had been the beneficiaries of this luck. In a time when the cell phone trade continues to adapt, LG’s technique of specializing in patents has equipped a gentle source of revenue, rewarding its group of workers within the procedure.
Source: tech.hindustantimes.com
