Patent Trolls Dancing to the Tune of the U.S. Government, Taking Aim at K-semiconductor

As U.S. patent protection policy is being reshaped to favor patent holders, the burden on the K-semiconductor industry is growing. Observers note that the U.S. government's pro–patent holder stance is encouraging the litigation activities of so-called patent trolls, or Non-Practicing Entities (NPE), forcing companies to spend resources on lawsuits that should be devoted to research, development, and investment.
According to industry sources on the 15th, the stronger patent protection trend that began under the Trump administration has become even more pronounced as federal administrative agencies such as the United States Patent and Trademark Office (USPTO) and the United States Department of Justice (DOJ) increasingly intervene in lawsuits. The patent invalidation trial system, introduced in the past to curb patent abuse, namely inter partes review (IPR), is now seen as losing its defensive function as the USPTO more frequently exercises its discretion to deny institution. Since the new USPTO director took office, the rate of denying IPR petitions has surged from around 30% to roughly 90%.
NPEs are targeting South Korean semiconductor companies that hold high global market shares. Samsung Electronics, for example, has twice faced jury verdicts totaling 421.15 million dollars (about 630 billion won) in its dispute with patent management firm Netlist. SK hynix has also been sued for patent infringement in U.S. courts by Advanced Memory Technologies and Monolithic 3D.
Voices of self-reflection are emerging within the United States as well. Ike Brannon, a senior fellow at the Jack Kemp Foundation, wrote in an opinion piece for The Washington Times, "The current U.S. system has excessively low standards for granting patents and overly protects patents that should never have been issued in the first place," adding, "The weakening of the IPR system may benefit patent trolls and the litigation funders who back them more than actual manufacturers." Brannon also noted, "Semiconductor fabs and advanced materials production facilities require initial investments on the order of billions of dollars," and explained, "When investors evaluate such projects, they consider litigation risk and the stability of intellectual property rights as key factors."
South Korea's semiconductor industry now faces the dual challenge of building large-scale industrial complexes while defending itself against patents on a global stage. An industry official stated, "There are clear limits to what individual companies can achieve through their own legal responses, so it is necessary to establish a response system at the public–private level to keep pace with changes in overseas patent policies."
km@fnnews.com Kim Kyung-min Reporter