‘Huawei eyes Samsung’s LTE patents’ Kicker: Two tech giants likely to resume cross-licensing talks

Samsung Electronics and Huawei are bracing for a legal battle after the Chinese tech giant sued its Korean rival for infringing its mobile patents last week. 

In its two lawsuits filed in China and the U.S., Huawei claimed Samsung’s Galaxy S phones had infringed 11 of its 4G network patents. The company asked for compensation but did not request a sales ban of the affected handsets. 

AP-Yonhap

Samsung fought back immediately, saying it would counter-sue Huawei. 

“What Huawei really wants is not cash compensation but Samsung’s own 4G patents,” said an industry source on condition of anonymity. “The lawsuit aims to induce Samsung back to the negotiating table.”

Samsung and Huawei have continued talks about a royalty-free, cross-license of related technologies, but the talks have been stalled allegedly due to Samsung’s lukewarm reception. 

In recent years, Huawei has poured considerable resources – about 15 percent of its total revenue – in research and development. Last year, the company filed the most patents to the World Intellectual Property Organization, at 3,898. 

But Samsung still outpaces Huawei in terms of total patents. In the U.S. market, a crucial market for both companies, Samsung is the second-largest patent holder among tech firms, next to IBM. 


Huawei is especially eyeing Samsung’s advanced 4G or LTE-related technologies. Samsung owns the largest number of standard-essential patents, at 954, or 12.7 percent of the total. 

“Huawei has some security issues in entering the U.S. network equipment market. With the latest lawsuit, it would seek to elevate its brand image,” the source added. 

Huawei, China’s largest handset and network equipment maker, is one of the top three equipment manufacturers in the world, along with Finland’s Nokia and Sweden’s Ericsson. Samsung may be a late comer but it is fast catching up with rivals based on its elevated brand power in device markets.

Meanwhile, Samsung is also considering a separate patent lawsuit against Huawei in the U.S. as early as in July, as part of a preemptive measure to secure an upper hand in the planned legal dispute, sources said Friday. 

But Samsung has no plans to extend the lawsuit to other markets such as Korea and China because there are no benefits in doing so. 

In China, fighting with Huawei would further strengthen the No. 1 company’s market position, while in Korea, the company owns only a tiny market share. 

“Samsung owns more than 100,000 patents filed in the U.S. It wouldn’t be difficult for it to find infringement cases by Huawei,” said another source. 

Samsung has been involved in several lawsuits with its global tech rivals, including a high-profile battle with its archrival Apple, in recent years. But this is the first time that Samsung has been sued by a Chinese company.

In 2014, Samsung and Apple agreed to withdraw all legal suits ongoing around the world, except those filed in the U.S. The U.S. Supreme Court will review the case later this year. 

By Lee Ji-yoon (jylee@heraldcorp.com)

Samsung introduces Batman-themed Galaxy smartphone

Tech giant Samsung Electronics rolled out another film-inspired mobile phone on Friday, continuing its years-long marketing efforts to boost sales of its flagship smartphones through collaboration with filmmakers.

This time, the Korean smartphone maker released a Batman-themed smartphone, the Galaxy S7 edge Injustice Edition, in partnership with movie production company Warner Bros. and entertainment firm DC Entertainment, aiming to lure fans of the superhero movie.


The release is also aimed at commemorating the third anniversary of a mobile game of the movie series, “Injustice: Gods Among Us.”

The game, developed by U.S. game firm NetherRealm Studios, features a collectible card mechanic and engages players in three-on-three tag team combat that features many of DC’s iconic characters.

The Korean firm said the limited edition of the smartphone will be only available in select markets, including China, Singapore, Latin America, Russia and Korea, in June, but hinted that more countries might be added to the list.

“We are excited to partner with Warner Bros. and offer a special edition of Galaxy S7 edge for fans of ‘Injustice: Gods Among Us,’” said Lee Young-hee, executive vice president of Samsung’s global marketing. 

“Samsung always seeks to provide the best mobile gaming experience for its users, and this partnership reinforces our commitment to the game’s fans,” the executive vice president said.

The specifications of the Batman-themed smartphone are the same as the original Galaxy S7 edge smartphone, but the new model comes in black with the signature Batman logo (in gold color) emblazoned on the back

Samsung Electronics’ joint marketing strategy with Hollywood filmmakers dates back to the pre-smartphone era.

Teaming up with Warner Bros., Samsung rolled out a limited edition of a semi-automatic slider with the alias, Matrix Phone, in 2003. The phone was featured in the science-fiction action movie, “The Matrix Reloaded.”

Samsung also rolled out limited Galaxy smartphone models featuring the characters of the movie “Iron Man” last year.

By Kim Young-won (wone0102@heraldcorp.com)

Samsung likely to countersue Huawei in U.S. in July: watchers

South Korean top tech giant Samsung Electronics Co. is likely to file a countersuit against Huawei Technologies Co. with a U.S. court in July, industry watchers here said Friday, after the Chinese company launched lawsuits claiming Samsung's infringement of its patents.

Earlier this week, Huawei brought two suits against the world's top smartphone maker with a U.S. federal court in California and the Chinese city of Shenzhen, seeking financial compensation for the alleged unlicensed use of 4G technology.

Industry watchers forecast that Samsung will take the counteraction sometime as early as July, since it usually takes at least two months to review a complaint in patent infringement battles.

"A Samsung-Huawei suit is likely to proceed slowly as the two sides are likely to pursue negotiations outside of the court after judging several circumstances," an industry watcher said.

Huawei, the world's third-largest smartphone maker, claimed Samsung and its affiliates gained huge profits by using the firm's technology without its permission.

Industry watchers further forecast that this will take a different course than an earlier patent battle between Samsung and its U.S. rival Apple Inc.

Samsung filed a countersuit against Apple in April 21, 2011, just four days after Apple first launched a patent infringement suit with the U.S. federal court of the Northern District of California. Soon, Samsung filed multiple suits in different countries, including South Korea, Japan and Germany.

"It will be very different from a Samsung-Apple suit, which was very spectacle," the watcher said.

Experts further forecast that there is very slim chance that Samsung may take legal action here or in other countries since more than half of Huawei phones are sold in the Chinese market.

The latest lawsuit highlights the rise of Asian competitors as technology creators and possible patent wars between tech firms.

Samsung sold 81.18 million smartphone units around the globe in the first quarter of this year, taking up 23.2 percent of the total, followed by Apple with 14.8 percent and Huawei with 8.3 percent. (Yonhap)

Samsung braces for patent war Tech firm increases its patent filings in the U.S.

The total number of patents that tech giant Samsung Electronics holds in the U.S. increased by more than fifteen times over the past nine years, according to the company on Thursday.

Samsung’s patents registered at the U.S. patent office stood at 38,809 last year, up from 2,457 in 2007.

An individual uses Samsung Electronics’ Galaxy S7. (Yonhap)

In 2015 alone, Samsung obtained 5,072 patents in the nation, the second highest after tech firm IBM. Since 2006, Samsung has been the second most prolific patent filer in the U.S., after Big Blue. 

“Samsung has been holding the most number of patents in the U.S. compared to other regions to effectively respond to possible patent conflicts there,” the company said.

The firm’s patents in the U.S. account for 35 percent of its total patents registered around the world, which stands at 110,145. 

The patent filings are mostly aimed at protecting technology for the firm’s smartphones, smart TVs, memory chips and System LSI, or non-memory chips. 

The Seoul-based tech giant said protecting its next-generation technology is one of the company’s top priorities for future growth.

Samsung has also been trying to bolster its design capacity by filing design patents for smartphones and TVs.

Among the 5,072 patents that Samsung gained in the U.S. last year, 1,342 were those to protect key design elements.

Samsung has a long history of patent disputes with its rivals, as well as global patent trawlers. The most prominent case is the one with U.S.-based smartphone maker Apple.

In 2011, the iPhone maker filed a lawsuit against Samsung, claiming the Korean firm had copied the iPhone’s square, round-corner, icon design. It later filed different suits against the Galaxy smartphone maker for infringing its patents including those for the rounded corners of the iPhone and its slide-to-unlock feature.

Most recently, a Chinese network equipment maker has sued Samsung for violating its patents for communications networks and software to run the fourth-generation networks on 4G mobile devices.

Samsung said it was considering a countersuit against the Chinese firm.

By Kim Young-won(won0102@heraldcorp.com)

OLED panels to replace LCDs in smartphones: reports

Organic light-emitting diode display panels are forecast to replace liquid crystal display panels for smartphones, as Apple Inc. and other smartphone makers are moving to equip their smartphones with OLED display panels, reports showed Thursday.

The global shipments of OLED display panels are expected to soar to 630 million units in 2019 from 250 million in 2015, according to a report by industry tracker IHS. The shipments of LCDs, in the meantime, are forecast to inch up from 1.29 billion to 1.34 billion in the same period.

IHS further forecast that the global revenue from OLED panels for mobile devices will soar from US$10.6 billion in 2015 to $19.5 billion in 2019, taking up 50.7 percent of the smartphone panel market. The revenue from LCDs is expected to decrease from $20.8 billion to $19 billion in the same period, the market tracker said.

The estimate comes as Apple is forecast to position its 5.8-inch OLED iPhone model as a replacement for the current 5.5-inch LCD model starting in 2017.

U.S. investment bank Goldman Sachs said in a recent report that Apple will adopt OLED starting in 2017 for the first time, adding that 113 million panels will be used annually.

Last month, Samsung Display Co., a flat panel maker under the Samsung Group, inked a deal with Apple to supply its OLED display panels. Under the deal, Samsung Display will supply around 100 million units of 5.5-inch panels annually, with the value being estimated at 3 trillion won ($2.59 billion).

OLEDs emit their own light, eliminating the need for backlighting and allowing handset manufacturers to produce thinner and lighter mobile phones. The panels also consume less power than LCDs. (Yonhap)

OLED iPhone renews competition among display makers After Samsung secures deal, LG and Foxconn cited as secondary suppliers

Apple’s adoption of an organic-light emitting diode screen is renewing competition among display makers.

According to recent news reports, Samsung has signed a deal with Apple to supply an annual 100 million OLED panels from the second quarter of next year for three years.

(Bloomberg)

“For now, Samsung is the only company that meets Apple’s strict product criteria. But considering its strategy of having multiple suppliers, LG and other display makers could share a fraction of the orders,” said Lee Choong-hoon, president and chief analyst of UBI Research, at a seminar for those in the industry and investors on Friday.

He predicted an OLED iPhone with a curved screen would debut in 2018, saying OLED models would make up 30 percent or 100 million units of total iPhone shipments in the year and the figure could surge to 80 percent by 2020.

“By 2021, Apple could outpace Samsung in terms of OLED adoption.”

Currently, Samsung uses OLED for almost 70 percent of its smartphones ranging from the flagship Galaxy S series to some lower-end models.

Samsung’s decision to supply OLED to its archrival also indicates that the world’s largest smartphone maker sees no breakthrough in its slowing phone sales, the top analyst added.

“OLED panels have differentiated Samsung phones from their rivals in the market. If Galaxy phones were selling well, the company would have not decided to supply OLED screens to Apple,” he said.

The research firm predicted Samsung would supply up to 60 percent of OLED panels for iPhones, while LG could supply some 20 to 30 percent of the orders. Japan Display and China’s Foxconn are also cited as secondary suppliers.

For its liquid crystal displays, Apple has three suppliers -- LG Display, Sharp and Japan Display.

But the analyst downplayed the possibility that Chinese display makers will become an OLED supplier for iPhones any time soon.

“Their technological capabilities and supply chains are still far behind Korean and Japanese rivals. It would take time for them to catch up with LG, not to mention Samsung,” he said.

“But it is also true that top management of Chinese companies has keen interest in winning Apple orders.”

Citing industry sources close to the matter, he said Foxconn had recently purchased an OLED production system of Canon Tokki, one of the key equipment for OLED production whose supply is extremely limited.

Lee Woon-keun, senior analyst at LG Economic Research Institute, also cautioned about underrating the potential of Chinese display makers that have grown based on the Chinese government’s strong support.

“They have achieved goals set by the government. They are fast growing not just on quantity but also on quality,” he said.

Under strict government guidance over the past three years, China has become the No. 2 market in terms of display panel shipments, holding 20 percent of global market share.

In a recent roadmap set for 2025, the government plans to pour considerable resources into nurturing value-added, high-end display panels, including OLED, in the coming years.

By Lee Ji-yoon (jylee@heraldcorp.com)

Preloaded Google apps to become removable in Korea

The Korean government is seeking a law revision to allow users to remove preloaded apps on Android phones such as Google’s Search, Maps and Gmail apps. 

Currently, the apps are preinstalled on new devices as part of Google’s contracts with manufacturers. 

Preinstalled apps are shown on the home screen of Samsung Galaxy S7 phones. (Yonhap)

Amid a similar investigation launched by the European Commission recently, the Korean government has also started working to reduce the unfair dominance of Google apps in the soaring mobile ad market. 

According to the planned revision, users will be able to remove apps preloaded by Google, Apple, handset makers and telecom carriers. 

Considering the market dominance of Android phones, Google apps are considered the key target for the revision. 

Apple does not allow telecom carriers to preinstall apps, while major Korean handset makers and telecom carriers preinstall their own apps on Android phones. 

In 2014, the Korean government created a set of guidelines to make preloaded apps removable, but they are not legally binding and so most companies do not follow them.

By Lee Ji-yoon (jylee@heraldcorp.com)

LG sells 1.6m G5 phones globally

LG Electronics said Thursday its flagship smartphone G5 shipments have exceeded 1.6 million units globally since its launch a month ago. 

“We will see more than 3 million shipments in the second quarter,” the company said during a conference call when it reported a 65.5 percent surge in operating profit to 505.2 billion won ($440 million) in the first quarter from a year ago. 


Even though strong sales of home appliances, especially more lucrative premium models, elevated the company’s profits overall, the mobile business division suffered a 200 billion won deficit due to marketing costs for the G5. 

The company said it could see a turnaround in the second quarter when G5 shipments, along with those of the new budget phone K Series, start to be reflected in sales. 

The company predicted its quarterly sales could reach 3.6 trillion won in the second quarter, calling the figure a break-even point for the mobile business division. 

The G5 is the industry’s first modular smartphone that allows users to upgrade camera and audio functions by switching different modules. Unlike earlier concerns about the tricky production, the company said it has no supply constraints. 

Despite a profit surge in the first quarter, sales were down 4.5 percent to 13.9 trillion won compared to the same period last year largely due to seasonal week demand for TVs and smartphones. 

Sales of the vehicle component division reported a 55 percent growth on strong performance of in-car infotainment systems but operating loss was 15.8 billion won due to increased investments, the company said. 

By Lee Ji-yoon (jylee@heraldcorp.com)