LG Electronics' Substantial Patent Sale: vivo Acquires 46 US Standard Patents, Accelerating Patent Monetization Strategy

LG Electronics' Substantial Patent Sale: vivo Acquires 46 US Standard Patents, Accelerating Patent Monetization StrategyFast Technology reported on November 27th that, according to reliable sources, LG Electronics has sold 46 valuable US standard patents to the Chinese smartphone manufacturer vivo. This marks another significant milestone in LG Electronics' ongoing patent monetization strategy since its exit from the mobile phone business in 2021

LG Electronics' Substantial Patent Sale: vivo Acquires 46 US Standard Patents, Accelerating Patent Monetization Strategy

Fast Technology reported on November 27th that, according to reliable sources, LG Electronics has sold 46 valuable US standard patents to the Chinese smartphone manufacturer vivo. This marks another significant milestone in LG Electronics' ongoing patent monetization strategy since its exit from the mobile phone business in 2021. The patents involved primarily focus on video signal compression codecs, encompassing numerous key technologies crucial for improving video processing efficiency and quality.

These patented technologies have a wide range of applications, including but not limited to intra prediction, inter prediction, transform coding, motion vector prediction, chroma format, affine motion prediction, bitstream signal processing, and high-frequency zeroing. These technologies are core components of modern digital video and audio processing, essential for ensuring high-quality, efficient video transmission and playback. They represent LG Electronics' deep accumulation and technological strength in video coding, providing vivo with a solid foundation for R&D and innovation in video technology.

This transaction is not an isolated incident in LG Electronics' patent sale strategy. In fact, since officially leaving the mobile phone market in April 2021, LG Electronics has actively explored commercialization pathways for its 24,000 standard patents. These patents cover key communication technologies such as 4G, 5G, and Wi-Fi, representing years of significant investment and technological accumulation in communication technology R&D. By selling these patents, LG Electronics has successfully maximized the value of its patent assets and secured a consistently stable cash flow.

This strategy of converting patent assets into real economic benefits makes LG Electronics' business model somewhat similar to that of Non-Practicing Entities (NPEs). Unlike traditional companies, LG Electronics no longer relies on its product line sales for profit, but instead operates and manages patents as independent commercial assets, gaining greater flexibility and profitability. This model shift has provided new momentum and direction for LG Electronics' development in the post-mobile phone era.

Prior to this transaction, LG Electronics had already achieved a series of significant results in the patent market. Between November 2023 and April 2024, LG Electronics sold 55 US standard patents to OPPO, laying the foundation for the success of its patent monetization strategy. Following this, in January 2024, another 14 US standard patents were successfully transferred to TCL, further demonstrating the market's recognition and demand for LG Electronics' patented technologies. Furthermore, in the second and third quarters of 2024, LG Electronics sold 32 and 7 related Korean family patents to OPPO and TCL respectively, further driving the in-depth implementation of its patent monetization strategy.

This series of transactions not only reflects LG Electronics' professional capabilities in patent management and operation but also brings considerable economic benefits. By effectively managing and operating its vast patent portfolio, LG Electronics has successfully converted potential intangible assets into actual cash flow, providing strong support for its future development. More importantly, LG Electronics' experience provides a successful case study for other companies hoping to maximize the value of their patent assets, showcasing the enormous potential and feasibility of patent monetization strategies.

LG Electronics' patent sale strategy is not merely a simple financial transaction; it is a crucial component of its transformation and upgrading. After leaving the mobile phone business, LG Electronics successfully positioned itself as a technology company with a strong patent reserve, and through active patent licensing and sales, it has achieved continuous profitability and development. This has not only brought economic benefits to itself but has also injected new vitality into the entire patent technology market.

vivo's acquisition of 46 US standard patents from LG Electronics is another successful case study of LG Electronics' patent monetization strategy and foreshadows more similar transactions in the future. This is not only of significant importance to LG Electronics' own development but also provides valuable experience and reference for other companies. In the context of increasingly fierce global technological competition, effectively managing and utilizing patent assets has become a crucial factor for companies to maintain competitiveness and achieve sustainable development. LG Electronics' successful experience undoubtedly provides valuable insights for other companies. It proves that patents are not only the result of technological innovation but are also important assets that can be converted into real economic benefits. Only by effectively managing and utilizing patents can their value be maximized, bringing sustained competitive advantages to the enterprise. LG Electronics has successfully put this idea into practice and reaped substantial rewards. Its experience is worthy of learning and emulation by other companies. This series of measures by LG Electronics has laid a solid foundation for its development in the post-mobile phone era and provided a successful case study for other companies to refer to. This is not only a commercial success but also a successful example of corporate strategic transformation and upgrading.

Through the effective management and commercial operation of its patent assets, LG Electronics has not only maximized its own economic benefits but has also brought positive impacts to the entire industry. Its successful experience provides valuable reference for other companies and opens up new avenues for the commercial application of patent technologies. In the future, with the continuous development and innovation of technology, the importance of patent technology will become increasingly prominent, and LG Electronics' successful experience will have broader significance and value. In the digital economy era, the effective management and commercial operation of patent assets will become an important strategic direction for enterprises to maintain competitiveness and achieve sustainable development.