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Company defends its actions, pointing to Microsoft and Apple's strategy: buy other companies' IP; sue with it

Today Samsung Electronics Comp., Ltd.'s (KSC:005930) smartphones are threatened with bans thanks to Apple, Inc.'s (AAPL) ambiguous patents from a decade ago.  And Samsung pays an estimated $15 USD per handset to Microsoft Corp. (MSFT) for its war chest of patents.  In other words, the world's best-selling smartphone maker has received a cold hard crash course on the twisted state of the U.S. intellectual property system.

Now it's looking to apply those hard-earned lessons and do some patent harassment of its own.

Samsung Electronics' sister-firm Samsung Display announced this week that in March it spent $25M USD to buy up patents on LCD, LED, and OLED display technologies from Japan's struggling Seiko Epson Corp. (TYO:6724) and launch a shell company, Intellectual Keystone Technology (IKT).

Based out of Washington, D.C., the new firm isn't exactly bashful about its objectiveness, which are the same as those of most shell companies: find corporate targets, demand they license, and sue if they don't comply.

Samsung TV
Samsung Display is looking to play the patent litigation game.  [Image Source: Flickr]
 
An unnamed Samsung spokesperson told The Korea Times, "Companies should be paying licensing fees for patents. We are paying to platform providers such as Microsoft in return for using their patents. IKT will be tasked to find out which patents are helpful and valued for Samsung."

Samsung Display was the world's largest LCD TV shipper in Q1 2013 according to Display Search.

The patents from Epson include a number of patents on organic light-emitting diodes (OLEDs), a new form of display technology that's expected to dominate the television and mobile device display industry over the next few years.  The patents also cover ultra-high definition display technologies, such as the "4K" display format that debuted commercially this year.

In other words, the Samsung Group -- having played the victim in the U.S. -- appears to be embracing the patent industry's dark side, with lots of juicy targets to sue.

Source: The Korea Times



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RE: One Big Ugly Mess... Patent Wars
By retrospooty on 5/27/2013 4:54:29 PM , Rating: 2
Yup... There can be no denying it now. Samsung really is copying Apple now. Lovely. Another reason not to buy anything from either company ever again.


RE: One Big Ugly Mess... Patent Wars
By ssnova703 on 5/27/2013 5:41:58 PM , Rating: 2
"They play dirty? Fine! Two can play this game!"

But who can we really support? Even if we did try to support the smaller guy who is being bullied by Apple and doesn't have the muscle to fight back, it could be a loss cause if they go belly up.

At the end of the day, the "superior" will get my vote, regardless... but when the big boys play together, they don't play nice... it's unfortunate, but it's what makes them compete at that level...NOT saying they "have to" do it, but if MS and Apple have a chest of patents to sue for(whether it's legit or trolling/abusing power for their benefit), you gotta do it too for leverage....otherwise, it won't be long until you're out. Yes, it sucks, yes the system is broken, business politics is nasty, etc. etc. that's reality.


By retrospooty on 5/27/2013 10:59:41 PM , Rating: 2
"when the big boys play together, they don't play nice... it's unfortunate, but it's what makes them compete at that level...NOT saying they "have to" do it, but if MS and Apple have a chest of patents to sue for(whether it's legit or trolling/abusing power for their benefit), you gotta do it too for leverage....otherwise, it won't be long until you're out."

LOL... It's totally game of thrones.


By ssnova703 on 5/27/2013 5:43:35 PM , Rating: 2
Crap meant "superior product"... typo and when I was referring to the little guy, I meant smaller companies like HTC, lol... obviously not Samsung.


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