In April, LG Electronics received a one-time payment in patent licensing fees for around $600 million but didn’t name the customers. Now, The Elec has learned that this licensing fee was from two companies, one of them being Apple.
According to the publication, LG Electronics and Apple “likely entered a long-term patent use agreement of up to ten years as is standard for large conglomerates.”
The source heard by The Elec is vague on which patents Apple agreed on, as the publication just says it includes “many standard essential patents.”
The pair had signed a cross-licensing agreement over patents in the past but as LG exited its smartphone business this is no longer required.
The large profit LG gained for its latest agreement is from it no longer having to pay Apple in return as it no longer makes smartphones.
The publication notes that Nokia has had similar agreements since it exited the handset business.
While LG Electronics doesn’t manufacture smartphones anymore, the company is still very important for Apple’s ecosystem, as LG Innotek and LG Display companies supply camera modules and displays to the Cupertino company.
For example, LG Display is said to supply OLED panels for the upcoming iPhone 14. This lineup is expected to be announced a few weeks from now.
Related:
Author: José Adorno
Source: 9TO5Google
