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Samsung Electronics is said to be showing interest in LG Electronic’s 5G mobile patents since it has given up its smartphone business earlier. The company may consider buying the patents from its former rival in the phone biz so these can be applied in its own mobile productions.
LG’s 5G patents gain attention
The Korea Times reported that Samsung Electronics is not the only one that is eyeing LG’s fifth-generation or 5G patents. A number of non-practicing entities (NPEs) are reportedly mulling on purchasing the said technology as well.
According to an industry insider, Samsung may be looking for ways to get 5G technologies and buying LG’s patents has come to mind since it already withdrew from the phone business. Rather than go to waste, the interested parties may have thought that they can just use them instead.
It was added that it is more likely that Samsung wants a licensing deal with LG instead of fully acquiring the patents. As mentioned before, NPEs are also interested since they can earn by holding onto the technologies and then sell them for licensing agreements. This means that they do not have the intention of using the patents for their own productions but selling them for profits.
"A lot of NPEs have approached LG Electronics for the possible acquisition of its 5G mobile patents," an insider told The Korea Times. "Various scenarios are being discussed as LG has valuable patents in both long-term evolution (LTE) and 5G standard networks and Samsung Electronics is said to be interested in using these patents.”
LG’s exit in the phone business
Earlier this month, LG Electronics announced it is officially withdrawing from the phone biz. It was not a quick decision as the company already considered all its options. The executives determined that they can no longer continue as the losses in their mobile business are piling up, and yet, sales remained bad.
After losing $4.5 billion in the last six years, it was decided to just give up and retreat from the mobile phone market. Reuters noted that LG Electronics is the very first major brand to call it quits. Meanwhile, Samsung Electronics may be interested in LG’s 5G technologies, but it said that as of this time, it does not have concrete plans about initiating a deal yet.
