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Samsung Electronics and IBM Announce Patent Cross-License Agreement

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The world's two most inventive companies agree to exchange intellectual assets to further innovation.

Samsung Electronics Co., Ltd. of South Korea, and IBM have announced a patent cross-license agreement, under which the companies will license their respective patent portfolios to each other.

IBM and Samsung topped the list of the world's most inventive companies in 2010 as the first and second recipients of U.S. patents, respectively. IBM has been the leading recipient of U.S. patents for 18 consecutive years.

Over the past several decades, IBM and Samsung have built strong patent portfolios covering a wide range of technologies including semiconductors, telecommunications, visual and mobile communications, software and technology-based services. This cross-licensing agreement enables the two companies to innovate and operate freely while using each other's patented inventions to help keep pace with sophisticated technology and business demands.

The companies said the cooperation fostered by cross-licensing reinforces their ability to provide better products and services, while maintaining their competitiveness. Details of the agreement, however, were not disclosed.

"This licensing agreement will help both companies expedite innovation and achieve business growth by providing each company access to the other's patents for basic technologies," said Dr. Seungho Ahn, executive vice president and head of the IP Center, Samsung Electronics. "We also hope the agreement will open new opportunities for wider collaboration between two of the leading innovators in the technology industry."

"Patents and innovation are a critical component of IBM's high-value business strategy," said Ken King, vice president, Patents, Software and Services IP Licensing for IBM. "In addition to protecting the huge investment we make in R&D, patents also allow us establish cross-licenses, which provide IBM and partners like Samsung with significant freedom of action, which is essential in the competitive global business environment."

About IBM

Please visit www.ibm.com

About Samsung Electronics Co., Ltd.

Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies with 2009 consolidated sales of $116.8 billion. Employing approximately 174,000 people in 193 offices across 66 countries, the company consists of eight independently operated business units: Visual Display, Mobile Communications, Telecommunication Systems, Digital Appliances, IT Solutions, Digital Imaging, Semiconductor and LCD. Recognized as one of the fastest growing global brands, Samsung Electronics is a leading producer of digital TVs, memory chips, mobile phones and TFT-LCDs. For more information, visit www.samsung.com.

IBM is a leading global hybrid cloud and AI, and business services provider, helping clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently, and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM's legendary commitment to trust, transparency, responsibility, inclusivity, and service.

For more information, visit: www.ibm.com.

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