LG pulled out of the mobile market last year, but it can still make money from it.
In April 2021, LG officially announced to stop selling 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.
According to the Korean newspaper The Elec, LG is considering licensing some of the 20,000 patents it obtained before shutting down its mobile business. Sources from The Elec reveal that LG plans to set up a subsidiary company to handle licensing deals for different smartphone brands.
LG may also sell some of those patents to interested companies. A few months after LG pulled out of the smartphone business, Samsung is 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Since the company’s smartphone business is no longer active, sharing some of that technology with older competitors won’t hurt but will also bring in revenue.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‘s patents is attributed to the very high cost of maintaining patents, estimated at 20 billion won (~ 16.5 billion USD) per year.
LG has licensed a number of patents related to mobile 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 finds use in the future.