Samsung Group to share patents with partners

By Kim Tae-gyu

The Samsung Group said Wednesday that the country’s largest conglomerate plans to share its patents with its subcontractors free of charge in a move to improve relations with them.

After holding a meeting at its head office in southern Seoul, the group came up with the decision that is in line with the government’s initiative of racking up symbiotic growth between big firms and their partners.

More than 5,000 subcontractors of the group are expected to benefit from the step as the affiliates of the Samsung Group holds hundreds of patents including those of key affiliates of Samsung Electronics and Samsung SDI.

``We opted to allow our subcontractors to use some of our patents specific to their productions without having to pay royalties to rack up a win-win relationship with them,’’ a Samsung Group official said.

``In addition, we would offer up to 610 billion won to our partners in various ways such as providing technical support or lending money at lower costs than banks in the future.’’

The conference was attended by key members of Samsung management like group Strategic Planning Office leader Kim Soon-taek and Samsung Electronics Vice Chairman Choi Gee-sung.

As the government pushes for cooperation between large firms and their partners, Hyundai Motor Group announced similar measures late last month.

The Seoul-based group said that it would let subcontractors use patents without any costs while providing 420 billion won to use for various means. It is also vying to buy materials with its subcontractors so that they can enjoy bulk discounts.

``Including bulk discounts, our suppliers would enjoy supports of up to 1.8 trillion won down the road. We will continue to state similar efforts to help our partners,’’ a Hyundai spokesman said.

Other conglomerates like LG, Lotte, SK and POSCO are expected to follow suit with similar measures.

The Lee Myung-bak administration has stressed the significance of collective growth between big firms and their partners and designated 56 conglomerates to evaluate their efforts toward that end.