AU Optronics buys patents from IBM

AU Optronics Corp (友達光電) yesterday signed an agreement with IBM Corp for the purchase of about 170 US patents related to liquid-crystal display technology from the US computer vendor.

The agreement, covering almost all liquid crystal display (LCD)-related technology, includes IBM's counterpart patents in Japan, South Korea, Taiwan and other countries, AU Optronics said in a statement. It didn't reveal the dollar value of the transaction.

AU Optronics, the nation's largest and the world's third-largest maker of flat-panel displays used in computers and televisions, said the two companies also entered into an agreement on cross-authorization of LCD patents.

The company is not alone in a move to strengthen its intellectual property position amid strong competition. On June 15, rival Chi Mei Optoelectronics Corp (奇美電子) said it signed contracts with Japan's Hitachi Display Ltd on cross-authorization of LCD patents.

The agreement will involve a total of 1,000 patents on a wide range of technologies used in making thin-film-transistor (TFT)-LCD screens from small panels for mobile phones to slim-screen TVs, Chi Mei said in a a filing to the Taiwan Stock Exchange.

The deal ensures that Chi Mei will be immune from intellectual property right infringement charges until 2010 while expanding its market share.