South Korean: ‘Patent trolls’ were a threat to manufacturing companies

South Korean: According to industry observers on Wednesday, South Korean chipmakers are growing more susceptible to non-practicing entities (NPEs) as Washington works to bolster patent protection amid a recent supercycle in the chip sector driven by an artificial intelligence (AI) boom.

According to Yonhap news agency, NPEs, sometimes referred to as “patent trolls,” make money by licensing or enforcing patents rather than creating commodities.

As Samsung Electronics Co. and SK Hynix Inc. generate record-breaking profits and increase their market share in the global semiconductor industry, these worries have surfaced, boosting the incentives for NPEs to initiate patent cases.

Others point to the Trump administration’s protectionist patent policies, which undermined protections intended to stop abusive litigation in the US.

By permitting challenges to patent validity, the United States implemented the inter partes review (IPR) system in 2011 in an effort to curb unnecessary litigation. The Trump administration, however, reduced the system’s efficacy by tightening the qualifying requirements for starting reviews.

According to reports, the number of cases refused reconsideration increased from an earlier estimate of around 30% to roughly 90% after the appointment of a new head of the U.S. Patent and Trademark Office.

NPE cases, according to industry observers, may hinder South Korean chipmakers’ investment and development efforts, therefore reducing their technical competitiveness.An industry analyst said that in addition to technological rivalry, the semiconductor sector—the country’s most important industry—faces external challenges including intellectual property laws.We should not allow patent trolls to exploit us. We must quickly develop workable countermeasures and communicate our concerns to the world community and the US administration.

According to industry statistics, Samsung Electronics placed second in the worldwide smartphone market in 2025. The company’s shipments increased by 5% over the previous year due to strong sales of its low-cost portfolio.

According to statistics provided by industry tracker Counterpoint Research, the South Korean tech giant had a 19% share of the worldwide smartphone market in 2025, up 1% from the previous year.

Apple, located in the United States, topped the list in 2025 with a 20 percent share, up 2 percentage points from the year before.