We Earn the Royalty

Korean companies are coming forward to receive royalties from foreign companies.

Korean companies used to be filed lawsuit because they introduced original technology from developed countries, such as Japan and the U.S., or to make illegal use of them. However, Korean companies are making the opposite cases. Although total sum of technology exports marks only 7percent of that imports, it is expected to increase as companies’ development of core technology bear more fruit.

- Subject of lawsuit: LG is moving fastest. Recently LG filed the lawsuit against the Quanta and Compal Companies of Taiwan for the patent infringement. The Compal Company illegally used the computer related patents, such as PCI Bus.

LG already agreed on the royalty contract with Intel Company last August. LG’s lawsuit against five other companies are still pending.

LG is negotiating with 60 world’s major computer companies in regard to patent. LG’s expected one-year royalty is $ 200 – 300 million. LG is hoping that digital TV VSB, for which Janice (one of its branch companies in the U.S.) has the right of patent, can earn a large amount of royalty once it is accepted into the standard U.S. digital TV transmission.

LG Phillips LCD also filed lawsuit against Japan’s NEC in regard to the patent for TFT-LCD. However, the negotiation was completed as LG Phillips decided to accept the royalty.

Nullity suit is taking place between Hynics semiconductor and U.S.’ Lamberth which has the original technology of the next generation high speed D Ram.

- Technology exports increase: For the first time in the history of Korean shipbuilding industry, Samsung Heavy Industries exported shipbuilding technology to the U.S. Chong Kun Dang Pharmaceutical Corp. gave the original technology of anticancer drug ‘CKD 602’ to one of the U.S. companies and received $ 30 million. Chong Kun Dang will receive an additional royalty of 5percent of the total sale price. Sam Yang Sa also exported the $ 3 million amount of technology to the U.S. BMS Company last year. Sam Sung Electronics also have 1442 patent items recognized by the U.S. Office of Patent Administration. Its semiconductor royalty is more than $ 15 million.

LG’s patent executive director Ham Soo-Young said, ‘Previously, we begged for technology from Japan. Now, situation has changed in some field. Our companies compete not only to win in the areas of marketing but also in the area of technology.’

artemes@donga.com