LG has signed a deal with Intellectual Ventures, a company that owns many an innovation right, so that it may continue to create new products without fear that it will be sued over the technology within them.

Intellectual Ventures is something of a strange beast. Created by an ex-Microsoft employee – a company that knows a thing or two about using patents to its advantage – it has been busy buying up myriad patents on the secondary market.

Once it has these patents it licenses them out to companies that want to use the technology in an upcoming product.

The roster of technology companies that have already snuggled up to Intellectual Ventures is impressive; Microsoft has signed a deal with the company, as have HTC, RIM and Samsung.

While some may see the buying up of patents as a rather underhanded tactic to get money out of companies that are actually trying to come up with products full of technological innovation, Intellectual Ventures doesn't see it like this.

Staying competitive

"Our goal is to reach productive licence agreements that give our customers access to the patents that will help them minimise risk and stay competitive," explained Andy Elder, executive vice president of global licensing at intellectual Ventures.

"That's especially important in crowded markets like the mobile industry. Litigation is an option we have, but we prefer to negotiate a licence that's beneficial for both companies."

Speaking about the deal Jeong Hwan Lee, head of LG's intellectual property centre, said: "Our alliance with IV gives us access to patents outside our core and allows us the freedom to focus on what's important in our industry – innovation."

Via BBC News