LG Employees Earn More Than $1 Million Each From Apple Patent Payments: Here’s How
After ending its mobile phone business in 2021, LG Electronics has found a lucrative revenue source through patent licensing. The Company has received significant payments from Apple and other undisclosed companies in 2022. In a move to reward employee contributions, LG distributed a portion of this income, with some individuals receiving more than $1 million each.
LG’s attractive patent licensing agreements
In 2022, LG was paid licensing fees for patents related to its old mobile division. Although the company sold its phone business, it continued to profit from its intellectual property portfolio. Among the highest paying customers, Apple stands out, paying LG more than half a billion dollars. According to a report, this substantial payout has now been trickled down to LG employees, who have shared in the proceeds. report by The Elec.
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Rewarding employees with such large amounts of money seems to fit with South Korea’s broader strategy to promote innovation in the corporate sector. The government encourages companies to increase patent filings by providing incentives, a policy that appears to have paid off for LG. The company’s shift from making phones to licensing patents reflects a shift in the technology industry, where intellectual property has become an important asset.
From phones to patents
Although LG’s phones have never achieved the market dominance of rivals like Apple or Samsung, the company has still been able to maintain a strong presence in the Android market, especially in the US. However, after struggling to turn innovation into sales, LG left the competitive phone market. They then focused on monetizing their patents, mainly selling them to Chinese companies like Vivo. These companies, needing patents to avoid legal battles, bought LG’s intellectual property to bolster their own portfolios.
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The patent licensing model has proven to be a lucrative business for LG, and its employees are the beneficiaries of its success. As the mobile phone industry continues to grow, LG’s patent-focused strategy has provided steady income, rewarding its workforce in the process.
