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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 evo slevven on 5/29/2013 1:18:11 AM , Rating: 1
There is a saying that goes sometimes asking nicely doesn't help anything unless you have the power to enforce. However if success is the factor to which then, logically speaking, shouldn't you correct your statement to reflect the manner that while Apple is the current dominant tech firm in the smartphone industry it is equally failing to show the growth as well .

IF we were to be rather "vulcan" about it (to take a Trekkie term rather) about the situation and take the emotion away from the argument then based on the failure to achieve expected growth, its current revenue forecast, sales that are typically indicative of the growth and ability of a company to expand then it'd be logical to say that Apple is closer to where Microsoft was in its prime and that the outlook for Apple looks rather bleak.

Even to this emotionless and rather logical argument we could also include all quantitative data regarding the higher adoption rates, usage, activation of Android~based phones as well as further subdivide the quantity of them as Samsung phones.

If you had to really be honest and "enjoy" the argument, then it seems Apple is in a decline and that the usage of patents to leverage towards competitors is nothing more than a ploy to either limit the actual scenario of loosing the sector dominance to Samsung eventually as well as a reflection of the inability to continually innovate in a field? OF course this part is a hypothetical but strictly looking at the data, one thing is for certain and that is Apple isn't achieving the same momentum it used to nor is it growing by the same standard and rate as Samsung. This part is quantitatively factual.

I thought though I'd correct some of the stuff for you in a wall~o~text for the sake of correctness and facts. Feel free to also check Apples earning reports regarding its first ever year-over-year revenue decline since 2003. Not a doomsday scenario but indeed not a positive sign.

Corrections courtesy of my Samsung Chromebook tethered to my samsung s2 because obviously Chromebooks get far fewer viruses than any Apple OS :D


By Cerin218 on 5/31/2013 5:15:12 PM , Rating: 1
Because in reality, Apple only exists because it got lucky. It made an MP3 player that people liked which kept the company alive long enough to create the iPhone. If it weren't for those two products Apple would have been RIM and they MIGHT exist today as a graphic design niche. Schools stopped using Mac because there was no purpose to teaching children on a computer that the business world didn't use. I lost my love for them during PowerPC simply because I could get a better PC compatible cheaper, and with all of the third party vendors I could get parts WAY cheaper.


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