LG Electronics to file patent lawsuits after mobile business exit to have extra source of income

LG Electronics is reportedly planning to file lawsuits against companies that try to use its mobile technologies without legal permission to do so. It was said that another reason for this move is to find new sources of income after shutting down its smartphone business for good.

LG’s aim for the patent lawsuits

The Korea Times reported that LG Electronics is now tapping into its pile of patents related to mobile technologies as it seeks new ways to at least recover some of the money it lost through the smartphone business in recent years. With the patent lawsuits, it is hoped that the company may still have a way to earn and contribute to the company.

"We are continuing to look into ways wireless patents can be utilized, and patent suits can be a way for the assets to continue to contribute to LG in the form of revenue and future innovation," the outlet quoted an LG Elec official as saying.

LG Electronics is officially closing down its mobile phone business in July. It is not just in South Korea, but the company is withdrawing worldwide.

But then again, it was said that LG Electronics will not be antagonizing firms but it will be going after companies that it thinks are using its telecom patents with no license. It is planning to take action including the filing of cases in courts so as to protect its intellectual property rights.

LG’s patent lawsuits

LG Electronics has actually sued some companies and already received damage compensation from offending parties or signed a licensing deal to prevent lawsuits. This boosted the firm’s revenues although it still suffered from huge losses.

For instance, earlier this month, LG Electronics won a case against the Chinese electronic firm TLC. Under the German court, it found that the latter infringed one of LG Elec's LTE patents and there was a penalty, as per Pulse News.

Lastly, In 2017, LG Elec sued BLU, an American smartphone brand in the U.S., for violations of five of its LTE Standard Essential Patents (SEP). The case was filed with both the U.S. International Trade Commission and a court in Delaware, and the verdict came out in favor of LG. BLU was made to sign an agreement to pay LG Electronics for the use of its technology. LG has several other cases that it won and this is surely contributing to the South Korean electronic company’s revenues.

“As we hold a number of universal patents whose standard essentiality is recognized by global courts, we will aggressively take legal actions against companies using our technologies without a license,” an LG official said.