Chinese tv giants surge, leaving oled kings in a patent battle
TCL and Hisense are not just selling more televisions in North America and Europe; they're rewriting the rules of the game. Quarterly sales figures are consistently surpassing those of established brands, prompting a scramble among traditional players to defend their turf—a turf increasingly defined by intellectual property.
The oled advantage and the lcd patent wall
While Samsung and LG maintain a stronghold through OLED technology—currently a Korean domain—the real battleground lies in LCD, LED, and Mini LED displays. The Chinese manufacturers’ meteoric rise has exposed a critical vulnerability for legacy brands: a dense web of patents surrounding LCD technology. These patents, largely held by Korean companies like LG Display and Samsung, effectively create a tollbooth for Chinese manufacturers, demanding royalty payments for every unit shipped.
But the Korean companies are taking a shrewd, and perhaps surprisingly generous, approach. Recognizing the potential for even greater revenue, LG and Samsung are reportedly considering licensing or even outright selling patents to Chinese contenders like TCL and Hisense. The logic is simple: the more these Chinese giants sell, the more royalties they generate—a fascinating inversion of the typical competitive dynamic.
A patent landscape dominated by korea
LG Display reigns supreme in OLED technology, holding a commanding lead in related patents. Their portfolio boasts 70,335 patents, a number that dwarfs many competitors. Samsung, a long-time LCD powerhouse, has similarly amassed a vast trove of patents, including over 150 patents protecting the privacy screen technology in the new Galaxy S26 Ultra. The sheer volume of patents held by these Korean companies—Samsung with 106,121 patents—effectively walls off the Chinese manufacturers, forcing them to play by Korean rules.
The numbers tell a clear story: in 2022, South Korea controlled a staggering 42% of all global patents related to Micro LED technology, far outpacing China (1107 patents), the United States (739), Japan (295), and the European Union (272). This dominance extends beyond Micro LED; LG Display’s patents are essential for manufacturing high-quality LCD panels, even for companies like BOE and CSOT, who have struggled to compete without them. A recent patent dispute between Samsung Display and BOE resulted in a settlement of hundreds of millions of euros, underlining the inescapable nature of this patent-driven landscape.
Beyond sales: the royalties goldmine
This isn't simply about shielding market share; it’s about a lucrative business model. LG Display’s patent revenue exceeded €57.5 million last year—a record high. Even in the LCD sector, where Chinese manufacturers have eclipsed Samsung in sales, Korean companies continue to profit handsomely through royalty payments.
A familiar cycle?
The current situation echoes past industry shifts. Sony and Panasonic once dominated the television market, only to be overtaken by emerging Chinese giants. History suggests a possible future where these traditional brands are forced into collaborations or even asset sales – a pattern we may be witnessing unfold once more. Whether a reliance on patents alone will prove sustainable remains to be seen; the past offers cautionary tales of companies failing to adapt to evolving market dynamics.