[Patent Talk] Samsung Electronics vs. Its Former Head of Patents

Patent trolls are back in the spotlight after a lawsuit filed against Samsung Electronics by Ahn Seung-ho, the retired former head of its IP Center, became a major issue. The patent suit was filed jointly by Staton Techiya LLC (STATON TECHIYA LLC) and Synergy IP (SYNERGY IP), and Synergy IP is reportedly the patent management company that Ahn founded in June 2020. The complaint states that Staton Techiya is the owner of a total of 10 patents in suit, including US8111839, and that Synergy IP has standing as an exclusive licensee with the right to grant sublicenses.

A patent troll generally refers to a company that does not run an operating business of its own but buys patents from individuals or companies in order to collect royalty income. The term "patent troll" originated with Peter Detkin, Intel's attorney, who denounced the opposing company as a "patent troll" in a patent suit brought against Intel by a company called TechSearch. TechSearch did not make any related products; it had bought patents cheaply from struggling companies and sued solely in pursuit of large damages.

Because they do not engage in businesses related to their patents, patent trolls are also called NPEs (Non-Practicing Entities). In Korean, NPE is usually translated as "patent management company." A representative NPE is Intellectual Ventures, which in 2008 caused public controversy by buying hundreds of patents from Korean university professors and others and demanding trillions of won in royalties from companies such as Samsung and LG. Interestingly, Peter Detkin, Intel's attorney, later moved to Intellectual Ventures as a managing director. Prompted by this episode, Intellectual Discovery, a Korean patent management company, was established in 2010 to prevent Korean patents from flowing overseas.

In an interview with a news outlet, Ahn dismissed the public controversy, saying that the patent owner, Staton Techiya, wanted to sue, that he merely joined the suit because he holds part of the rights, and that he bears no ill will toward Samsung. For Samsung Electronics, however...

LNB IP Law Firm