Apple is licensing patents from LG Electronics, a recent report has revealed. In the first quarter of 2022, LG Electronics received a payment of 890 billion won from two companies and the report states that one of the customers was Apple.
Apple and LG Electronics have entered a long-term patent use agreement
As per The Elec, Apple paid over 800 billion won out of the total 890 billion won that LG Electronics received. Furthermore, the publication speculates that the two companies have “likely entered a long-term patent use agreement of up to ten years as is standard for large conglomerates.”
The pair had signed a cross-licensing agreement over patents in the past but as LG exited its smartphone business this is no longer required.
The large profit LG gained for its latest agreement is from it no longer having to pay Apple in return as it no longer makes smartphones.
According to the publication’s sources, the patents involved in the deal likely include many standard essential patents. In addition to this, LG Electronics is expected to strike a similar deal with Samsung as well.
LG has been out of the smartphone business for a while now, however, it is still an important player in the market as it provides the Cupertino tech giant with displays (LG Display) and modules for the iPhone’s camera (LG Innotek).
LG Electronics is also focusing its resources on electric vehicle components, connected devices, smart homes, robotics, artificial intelligence, and business-to-business solutions, as well as platforms and services.
Last year, it was reported that LG Display won orders of low-temperature polycrystalline oxide (LTPO) thin-film transistor (TFT) OLED panels for Apple’s next-generation 6.7-inch iPhone 14 Pro Max model, for the first time. However, it is sharing the orders with Samsung.
The upcoming iPhone 14 Pro and Pro Max are widely-rumored to feature a new pill + hole punch cutout at the top of the display which will house Face ID components in addition to the camera. The iPhone 14 lineup is expected to be announced on September 7.