ASUS has filed a lawsuit against Samsung, accusing it of infringing on its patent rights to wireless technology in Samsung Galaxy 4G and 5G devices, including the current Galaxy Z Flip5 foldable model.
Despite its weak presence in the smartphone market, ASUS has accumulated a very impressive portfolio of patents, the infringement of which threatens other companies with litigation. Even if it is the world’s largest smartphone manufacturer Samsung. ASUS asked Samsung to pay a licensing fee for use of its patented technologies a year and a half ago, but the companies couldn’t come to an agreement.
ASUS has been investing in mobile technology for many years and has built a significant patent portfolio. This not only brings her licensing income, but also serves as protection against possible legal threats. Recently, ASUS founded two companies, ASUS Technology Licensing and Innovative Sonic Limited, and gave them the rights to its own patents. The organizations transferred their portfolios to the management of a subsidiary of Celerity IP LLC, whose legal interests are represented by GLS Capital. A standard wireless patent owned by Celerity IP LLC is being sued against Samsung in the Eastern District of Texas. This patent describes “a method and apparatus for improving data transmission using a configured resource in a wireless communications system.” and applies to smartphones that support the 4G and 5G wireless communication standards.
ASUS entered the mobile phone market back in 2003, but never became a leading player there. According to DigiTimes, ASUS expects to sell a total of 600,000 ROG Phone and Zenfone smartphones by the end of 2023. For comparison: Samsung brought more than 260 million of its smartphones onto the market in 2022 alone.
Litigation over standard patents typically lasts many years, and even if the court forces Samsung to pay ASUS for use of its technology, it is unlikely to increase the profitability of the company’s smartphone segment. On the other hand, the two companies could enter into a reciprocal licensing agreement. However, as with any legal dispute, such a case can take several years to be resolved in court.