Source: Koreatimes
Date: May 25, 2010

 Samsung and LG Group, whose annual incomes mostly come from their electronics-related businesses, are looking to strengthen their bargaining power in intellectual-property rights.

Samsung Electronics and LG Electronics have seen rapid corporate growth over the last decade, but little attention to intellectual property rights has involved them in several patent battles.

On Friday, LG Group said it has a plan to increase its number of patents experts to 370 by 2012 from the current 280. It is also planning to set up patents-tasked offices in four regions, including North America, China and the Euro zone to effectively deal with litigation issues.

``The group aims to boost income from intellectual-property patents,'' spokesman Lee Hyung-keun said, adding the company has created a special committee of patents executives from the group's eight affiliates.

LG Group has flat panel displays, consumer electronics, batteries, telecommunications and components businesses via its electronics, display and chemical units.

LG Electronics and LG Display are involved in court battles over copycat issues. LG Electronics is the world's No. 3 handset maker, while LG Display is the world's No. 2 manufacturer of flat-screens, slightly behind market leader Samsung Electronics.

``To minimize possible risks, LG Group will form a united front with affiliates for upcoming licensing deals,'' Lee said.

The situation isn't that much different at Samsung. Samsung Electronics is near completing a months-long check-up of management efficiency in its legal team.

``Various measures will be included as Samsung needs to strengthen its edge to deal with intellectual property rights,'' a group spokesman said.

Samsung was recently sued by VHS in the Northern District Court of Georgia, United States, over its use of video motion technology, which VHS originally acquired from LG Electronics.

Representatives say South Korean electronics makers are becoming targets from ``patent trolls'' as increased competition between manufacturers makes room to seek more money in legal suits.

Samsung has agreed with InterDigital to pay $400 million for the latter's patents. It also signed cross-licensing deals with Rambus of the United States and Sharp of Japan, ending years-long legal fights.