Patent technology for industrial convergence
In 2005, Hyundai Steel became the first company in South Korea to develop anti-seismic steel with high-strength, energy absorption and shock resistance. The recent successful development of the world’s first refractory anti-seismic steel was another landmark achievement. The Arc Furnace Development team will continue to pioneer new frontiers.
Developing patented technologies as an integral part of our business strategy
Securing technology competitiveness through patented technologies in conjunction with R&D strategies
In the past, most companies acquired technology patents in order to protect themselves from infringement disputes and to obtain as many patents as possible, thereby becoming technology leaders. This approach is becoming increasingly less effective as convergence of industry sectors and technologies has led to an increase in both the quantity and the diversity of technologies needed.
Many US and Europe-based companies have built a successful business model where technologies developed through R&D programs contribute to increased profits. There are a number of South Korea-based companies which excel at generating revenue, yet they lack patent expertise which could lead to profits through means including patent infringement lawsuits.
Drive Revenue with patented technology, various business models
Hyundai Motor Group plans to establish a new strategy, capitalizing on its technology patents, from a more strategic business perspective, enhancing product competitiveness and R&D productivity. Hyundai Motor Group has begun acquiring promising patents and building a network for patent work through i-LAB, an internal organization established to lead on patent-related work. Hyundai Motor Group also plans to review existing patents it already owns and to investigate earnings potential by finding a market for them.
Building business partnerships with other global OEMs and the sale of non-core patent assets will also be explored. Overall, there is significant potential to increase Hyundai Motor Group’s competitiveness in its patent management by exploring new business models and finding means to enhance the value of existing and new patents.
Mobility sector patent trends
The automotive industry is expected to face a surge in patent infringement disputes in all of the areas associated with electrification, such as green, IT convergence and future mobility technologies.
Rapid Rise in Green-Related Patent Technology
Green: hybrid electric and electric cars
Hybrid electric drivetrain-related patents have increased exponentially since the early 1990s, reaching 68,000 by late 2019. Nearly 70% of the patents belong to Japanese companies. This makes developers of hybrid powertrains particularly vulnerable to patent infringement.
Disputed patent technology brought about by fusion
IT convergence: User Interface (UI)
Patent infringement was not an issue in UI development since OEMs used to directly source them from suppliers. However, dispute over UI-related patents is expected to increase as competition for new UI development is becoming increasingly strong.
A range of future mobility technologies
Future mobility: Connected cars, autonomous driving
Disputes over patent infringements in future mobility-related technologies including connected car platforms, recognition algorithms, and sensors are expected not just between automotive OEMs but also ICT companies. Hyundai Motor Group is preparing to deal with potential disputes through various means including R&D and M&A.
