By Alimat Aliyeva

LG Electronics will start receiving Wi-Fi patent royalties from Amazon in the United States, further expanding its intellectual property business despite having exited the smartphone market in 2021, Azernews reports, citing Korean media.

The company announced Thursday that it has signed a patent licensing agreement with the global e-commerce giant for the use of LG’s standard essential Wi-Fi patents. Under the deal, Amazon can incorporate LG’s Wi-Fi technology into devices such as Alexa AI speakers, Fire TV Stick streaming devices, and Fire tablets.

Standard essential patents (SEPs) are core technologies that must be used in any product complying with international standards. Once a technology becomes part of a global standard, companies around the world rely on it in developing their products.

According to LG’s 2025 semiannual report, the company holds approximately 97,880 registered patents worldwide, with roughly half classified as standard patents. These patented technologies are already integrated into products such as OLED TVs, washing machines, and refrigerators, and they extend into future-oriented areas like telecommunications, automotive components, and sixth-generation (6G) communications.

Although LG exited the smartphone market in 2021, it has been actively growing its intellectual property operations by leveraging decades of accumulated mobile and communications technology. In 2022, the company officially added “licensing of patents and other intellectual property rights” to its articles of incorporation, solidifying it as a key business objective.

The company’s standard patent licensing business is managed by the IP Center under Chief Technology Officer Kim Byoung-hoon. The R&D-focused organization’s patents are now generating revenue, and LG is reportedly negotiating Wi-Fi standard essential patent licensing agreements with several other global companies.

This move highlights a broader trend among former hardware giants: even after leaving competitive markets, tech companies can turn their intellectual property into a lucrative business, effectively monetizing decades of innovation without manufacturing a single device.