LG's lucrative patent licensing: Employees receive million-dollar bonuses, new foldable screen patent showcases technological prowess

LG's lucrative patent licensing: Employees receive million-dollar bonuses, new foldable screen patent showcases technological prowessAlthough LG Electronics officially exited the mobile phone market in 2021, this doesn't signify the end of its contributions to mobile technology. Instead, LG continues to actively develop and license its extensive portfolio of mobile patents, generating substantial revenue and sharing this success with employees who contributed to the company's technological innovations

LG's lucrative patent licensing: Employees receive million-dollar bonuses, new foldable screen patent showcases technological prowess

Although LG Electronics officially exited the mobile phone market in 2021, this doesn't signify the end of its contributions to mobile technology. Instead, LG continues to actively develop and license its extensive portfolio of mobile patents, generating substantial revenue and sharing this success with employees who contributed to the company's technological innovations. This not only reflects LG's enduring technological strength but also showcases the effectiveness of the South Korean government's policies encouraging corporate innovation.

In 2022, LG publicly disclosed receiving a total of 890 billion KRW (approximately 466 million RMB or $65 million USD) in patent licensing fees from Apple and another unnamed company. This substantial income is not an isolated incident. According to Phonearena, LG consistently receives licensing fees from multiple companies and distributes a portion of this revenue as bonuses to employees involved in patent development and application. Significantly, some employees received bonuses exceeding $1 million USD.

This generous bonus policy isn't solely LG's initiative; it's rooted in South Korea's Invention Promotion Act. This law mandates that companies allocate at least 5% of their patent revenue to employees involved in the related research and application. This aims to incentivize South Korean companies to actively pursue technological innovation and boost the motivation and creativity of R&D personnel. By legislatively linking patent income with employee reward mechanisms, the South Korean government effectively fosters technological advancement and talent cultivation, providing strong support for the continued development of the country's tech industry. LG's case is a vivid example of this policy's success.

LG's patent licensing revenue reflects its past deep accumulation in mobile phone technology and foreshadows its continued influence in the field. Even after exiting the mobile hardware market, LG maintains a competitive advantage in patent licensing, securing stable economic benefits thanks to its robust technological reserves. This generates substantial income and provides a solid foundation for future strategic development.

Further substantiating LG's continued investment in technological innovation is its recent series of new patent applications. As reported by IT Home on November 15th, 2024, LG obtained a US patent from the USPTO in October 2024 for a small foldable phone, with the application filed in June 2024. The patent describes a device equipped with a "high-rigidity support structure with adhesive layers of different curing levels." While it remains unclear whether LG will return to phone manufacturing, this new patent application demonstrates its active pursuit of advanced mobile technology and preparation for future patent licensing revenue.

The technology showcased in this new patent signals LG's continuous exploration and technological accumulation in the foldable phone sector. Technical details such as the "high-rigidity support structure" and "adhesive layers of different curing levels" reveal LG's efforts to enhance the durability and reliability of foldable phones. These innovations can not only increase the potential value of future patent licensing but also serve as crucial references for future phone designs, potentially influencing the technological direction of the entire industry.

LG's case exemplifies a successful diversified development model for technology companies. Even after withdrawing from the fiercely competitive mobile hardware market, LG continues to reap substantial returns in patent licensing leveraging its technological strength and patent portfolio. Simultaneously, the South Korean government's policy support provides a favorable environment for corporate technological innovation and talent cultivation. LG's approach offers valuable lessons for other companies and provides new insights for the global technology industry's development.

LG's substantial patent licensing revenue and resulting employee bonus program constitute a successful case study, proving the long-term value of R&D investment and showcasing the importance of intellectual property in the modern economy. This provides valuable experience for other technology companies and instills confidence in those who have invested heavily in technological innovation without seeing immediate significant returns. LG's experience also offers valuable guidance for national and regional policies aimed at encouraging technological innovation.

In conclusion, although LG has exited the mobile phone market, its success in patent licensing, along with the resulting substantial returns and employee bonuses, fully demonstrates its continued investment and remarkable achievements in technological innovation. This not only brings considerable economic benefits to the company but also makes significant contributions to the development of the South Korean technology industry, providing valuable experience and lessons for the global technology sector. LG's future development warrants continued attention.