Let's look at the patented technologies in the automotive industry
Riding the wave of the fourth industrial revolution, Hyundai Motor Group is conducting a number of strategic activities focused on patents including registration of new technologies, in order to achieve outstanding product and service competitiveness. How is support for patent-related work provided for Hyundai Motor Group workers dealing with the current transformation of the automotive industry? We interviewed staff from the Intellectual Property Development Office on the importance of patents and what their work involves.
Please provide an introduction of the IP Development Office
Part Leader Young-Ho Gwon, Hyundai and Kia Intellectual Property (IP) Development Office Intellectual Property Team
The IP Development Office’s main responsibilities are; IP-and patent-related work, patent information management, preparation and management of technology contracts and researching patent laws of major markets. The office was created in 2009 as a preemptive measure to counter the rise in technology disputes in the automotive industry. The IP Development office consists of two teams, with approximately 80 members in total. The office mainly handles three types of tasks. First, it helps identify new technologies developed in-house and registers them for patents. We accelerate patent registration by mobilizing resources including patent attorneys if necessary. Second, we are constantly searching for ways to avoid patent infringement lawsuits and tackling them early on when they do happen. Lastly, the office supports the utilization of the patents owned by Hyundai Motor Group with the goal of turning them into a source of profit.
What are the types of support the team provide for patent development?
Senior Researcher Jae-hoon Choi (left) and Part Leader Young-Ho Gwon, Hyundai and Kia Intellectual Property (IP) Development Office Intellectual Property Team
Our main responsibility is supporting patent registration for securing legal rights but we also support the development of technologies. We created "i-LAB" through which the R&D staff, in charge of technology development, the patent experts from the IP Development office and patent attorneys all work together towards patent registration. The patent experts become involved at an early stage in the development process to support the development of the technologies and minimize any risk of patent dispute. We provide a wide range of information including on the latest technology trends to help R&D staff predict future development of relevant technologies. Feedback from R&D staff has been very positive.
Does the team have other support measures for identification and development of patent technologies other than i-LAB?
Senior Researcher Jae-hoon Choi, Hyundai and Kia Intellectual Property (IP) Development Office Intellectual Property Team
We host an annual R&D Idea Festival to encourage new inventions. This year’s festival marked the 10th anniversary and approximately 17,500 patents have been registered as a result of the annual festival in the past 10 years. Many of the patented technologies have helped boost competitiveness at a product and industry level. In 2019, over 3,000 patented technologies were submitted and six finalists were selected, including ”changeable cargo box mounting technology”, ”vehicle body structure optimized for impact energy absorption and increased rigidity” and ”low noise operation pressure adjustment device”. We also have a reward program to encourage innovation, with prizes including a cash prize of up to one billion KRW, for R&D staff who contribute to the development of patents, which have increased profitability.
Is there one technology patent that stood out for you?
It is hard to pick just one technology since there have been so many impressive patents that we have processed. However, if I had to pick one it would be the six-speed automatic transmission for front wheel drivetrain developed by a team of seven engineers, and led by senior engineer Hu-Tae Sim. The transmission won the prestigious Presidential award on the 49th National Inventors’ Day in 2014. It was the first mass-produced six-speed automatic transmission developed in South Korea, and greatly strengthened the technological capacity and growth of South Korea’s automotive industry. At the time, South Korea heavily relied on overseas engineering companies for automatic transmission design and technology with an estimated technology lag of more than 20 years. This independently designed six-speed transmission with new structure changed all that. Normally, the number of parts increases in higher speed transmissions. However, the new six-speed transmission had an innovative design which made it possible to have less parts compared to the five-speed transmission. Thanks to the reduction in part numbers, Hyundai Motor Group was able to dramatically increase production volume from 0.3 million units in 2009 to 3.5 million units in 2013. This single patent helped Hyundai Motor Group achieve a leapfrog growth as a global automaker.
Hyundai Motor Group is steadily expanding its patent applications to lead the patented technology for electric power
What is the latest global trend in technology patents?
Our analysis of patents registered in the US, where IP rights and patent registration is most active, revealed that nearly 30% of automotive-related patents were in IT and green technologies. The trend towards these two areas has been happening for some time as the development of green technologies has continued to increase, and by 2015, their proportion had increased to just over 40%. It has since remained at this level. In the past, the proportion of Hyundai and Kia patents in IT and green technologies was lower than that of our competitors. However, it is now on a par with our competitors as in recent years we have registered more patents and our relevant technology portfolio has been strengthened. I firmly believe that Hyundai Motor Group will surpass all of our competitors in relevant patents as Hyundai Motor Group becomes a leader in electrification.
Example of Hyundai Motor Group’s patent utilization
Cross-licensing in FCEVs between Hyundai Motor Group and Audi AG
Cross-licensing is an agreement which allows contracting parties to share each other’s patented technologies. In 2018, Hyundai Motor Group signed an agreement to cross-license patented technologies for hydrogen electric vehicles with Audi AG. Audi is in charge of hydrogen electric vehicles R&D within the Volkswagen Group. Applicable for all brands within Hyundai Motor Group and the VW group, the agreement is one of the biggest of its kind. The cross-licensing agreement was reached thanks to the existence of a strategic interest between Hyundai Motor Group, which is seeking to increase FCEV production and improve profitability, and Audi, which wants to accelerate its FCEV development. There is great potential for synergy between Hyundai Motor Group which mass-produced FCEV for the first time in the world in 2013, and the VW Group which has been the largest automaker in the world.
Establishing a joint venture with an autonomous driving technology company
Collaboration with ICT companies is just as important as developing new patented technologies for the development of autonomous vehicles. Hyundai Motor Group recently established a joint venture in the US with APTIV, a world-class technology leader in autonomous driving. The joint venture has been given the mission of developing level 4 and 5 autonomous driving software as defined by SAE International. The joint venture has been funded with 2 billion USD, and the market has been full of news on the formation of this exciting new alliance for the development of autonomous driving technology. Hyundai Motor Group’s decision to form the joint venture with the leading autonomous driving technology company is well aligned to the latest trends in patent utilization strategy.
Sharing patents for shared growth
Hyundai Motor Group has been sharing some of its patented technologies with SMEs to promote shared business growth. In 2016, Hyundai Motor Group signed an ”Agreement for Technology Sharing” which included a total of 417 technologies, 216 of which were drivetrain technologies (transmission, chassis, and vehicle body), 155 engine technologies (hybrid electric, fuel cell, engine parts, gasoline engine) and 46 other automobile technologies. 29 SMEs, selected by Hyundai Motor Group according to evaluation criteria such as technological capacity and detailed technology utilization plans, were given license grants for 141 technologies (180 patents) free of charge.
