Reportedly, it is to be revealed by ‘The Elec’ that Samsung Display has transferred hundreds of South Korean LCD patents to the Chinese firm which is ‘China Star Optoelectronics Technology.’ And these patents are transferred to CSOT’s ownership in June.
Apparently, Samsung Display has sold hundred of U.S patents pertaining to liquid crystal display technology to the TCL-owned panel maker.
In addition to this, as per ‘The Elec‘ in total, Samsung Display gave 577 U.S patents to CSOT. To be noted, it only previously acquired the Korean firm LCD factory in Suzhou, China, in 2020. While, on the other hand, Samsung Display now allegedly sold more than 2,000 LCD technology patents globally. This particularly indicates the move that depicts the fact to the end of its involvement in the business.
Whereas Samsung Electronics will retain rights to use all of the patents sold by its subsidiary firm. This move will be going to benefit TCL, which continues to be fully invested in the LCD TV business. Whereas it has been at risk in the U.S to patent lawsuits. And therefore, in this way by acquiring the patents, it going to protect itself from future lawsuits. Simultaneously, the same patent could even use to file lawsuits against its top competitors in the U.S, BOE Technology Group Co.
Low demand for LCD panels post-pandemic
Industry experts on this say, that patent lawsuits are unpleasant as the LCD display-making industry has matured to a great extent. However, the LCD panels were in good demand at the time when the COVID-19 pandemic starts. But now people have more options to watch TV again as people used to spend more time outside. Therefore very few of the crowd in the market are opting for a new TV. As a result of this, the LCD prices are much cheaper now as compared to the pricing that used to be there before the pandemic, and subsequently, it enforce makers to cut off their production capacity. And hence, if a patent can be used to obstruct the competition, then it would be a feasible business trick.
To bring the things into highlight then TCL is the parent company of CSOTs. While on the other hand, Samsung Display also owns a minority stake in the firm. It’s a key supplier of LCD panels to Samsung Electronics.
Join SamNews 24 On Telegram for instant Samsung Updates. Also, follow us on Google News.