Non-practicing Entity
Samsung’s latest move is receiving a lot of attention in the industry.
According to industry sources on January 1, Samsung Display is selling its stake in Intellectual Keystone Technology (IKT) to subsidiaries and businesses overseas, including Cheil Industries and Samsung SDI. IKT was established in the US by Samsung Display on March 2013 with an investment of US$25 million to handle patent development and trading.
Samsung SDI is reported to have recently bought a 17% stake in IKT. Earlier, Cheil Industries purchased a 24% stake in the same company. As a result, Samsung Display’s 100% stake in the US-based affiliate has shrunk to only 28%, as other affiliates such as Cheil and SDI have acquired their stake in the firm.
Samsung’s move can be interpreted as the company’s willingness to nurture IKT as a Non-Practicing Entity (NPE) to sharpen its competitive advantage in the global patent war.