Patent Troll Takes Aim at LG

      January 06, 2012 10:22

      The U.S. patent troll InterDigital is suing cellphone makers LG Electronics, Nokia and Huawei for royalties on patented mobile phone technologies it has bought up. InterDigital filed a complaint with the U.S. International Trade Commission, which started investigating on Dec. 21, LG Electronics said Thursday.

      A patent troll is a company that buys up patents and collects royalties but has no productive business of its own. If the ITC rules in favor of InterDigital, LG Electronics cannot export mobile phones using patents held by InterDigital to the U.S.

      After a previous suit, LG paid InterDigital US$285 million in royalties from 2006 to 2010. LG says fresh negotiations about royalties failed, leading to the complaint.

      Meanwhile, Samsung Electronics is not among InterDigital's targets because the two companies agreed a deal.

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