It's reported that the patents LG Electronics sold to OPPO are standard patents for the codecs required for video signal compression. Currently, 34 patents are registered with the United States Patent and Trademark Office, while 14 technologies are in the process of being registered.
The sale of standard patents from LG Electronics to OPPO appears to be a mutually beneficial outcome. With LG Electronics exiting the mobile phone business, they possess numerous standard patents, while OPPO, continuing its smartphone business, seeks to expand its market with patent support. Since exiting the mobile phone business in April 2021, LG Electronics still holds 24,000 standard patents, including those for 4G, 5G, and Wi-Fi, and is committed to monetizing them.
According to previous reports by Pulsestacks, LG Electronics officially announced on April 5, 2021, that it would withdraw from the mobile business amid intensifying competition with larger rivals, after years of losses, with the goal of completing this by July 31 of the same year. LG's mobile division has been in the red since the second quarter of 2015.
LG Electronics stated that this strategic decision would allow the company to focus its resources on growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence, B2B solutions, as well as platforms and services.
