Samsung Display has transferred thousands of its global LCD patents to TCL CSOT, including 577 U.S. patents, according to sources. With the completion of the LCD patent disposal, Samsung Display will completely withdraw from the LCD business.
Samsung Display transferred 577 US patents to Chinese panel maker TCL CSOT in June and hundreds of South Korean patents last month, South Korean media Thelec reported. The transferred patents are mainly filed and registered in the United States, with relatively few patents obtained in Japan, China and Europe. Industry estimates put the total number of patents Samsung has sold to TCL CSOT at about 2,000.
According to the report, most of the patents that Samsung Display has transferred to TCL CSOT are LCD patents. Prior to exiting the LCD business, Samsung sold its LCD plant in Suzhou, China, to TCL CSOT in 2020. After the patent sale is completed, Samsung Display will completely exit the large-size LCD business. TCL has been exposed to numerous patent lawsuits in the US due to weak patents. By acquiring patents from Samsung Display, TCL CSOT and its parent company TCL have strengthened their patent competitiveness.
As for Samsung Electronics, Samsung Display is expected to secure the right to use its patents by transferring its patents to TCL CSOT, preventing patent disputes to the same level as before. In general, contracts are entered into to secure the right to use a patent so that existing business is not affected even if the patent holder disposes of the patent.
The price of large-size LCD panels has been falling for more than a year since the second half of last year. Prices for large-size LCD panels have fallen below pre-pandemic levels and are not expected to recover until next year. Currently, the utilization rate of TCL’s CSOT plant has also fallen sharply.
Samsung Display was scheduled to exit the LCD business in 2020, but has only now actually exited the market. That’s mainly because the price of large-size LCD panels has soared since the end of the first half of 2020. It has been two years since Samsung Electronics asked Samsung Display to extend its production schedule to ensure panel prices.
At the IMID 2022 event in Busan last week, Samsung Display CEO Joo-seon Choi made it clear in his keynote speech that he would exit the LCD business, calling “Adu LCD” and “Goodbye LCD.”.
In addition, Samsung will sell 2,000 patents to CSOT and will receive compensation for related inventions. According to the Invention Promotion Act, the user (company) must compensate the inventor (employee) when the patent revenue is generated through patent disposal.
Post time: Oct-11-2022