LGE, General Electric announce licensing agreement

This new agreement will allow LGE and GE to use one another’s patents for refrigerators and cooking appliances without paying licensing fees.

“We believe that this licensing arrangement with GE will enhance our ability to deliver winning products and move us further toward our goal of becoming one of the top global brands in consumer electronics and home appliances,” said Mr. Kevin Cha, General Manager of LG Electronics in Jordan.

Mr. Cha also added, “This agreement is part of a win-win strategy for both GE and LGE; we expect the synergies resulting from the strong relationship between our two companies will contribute substantially to the success of both GE and LGE.”

The companies marked this new cross license agreement with a ceremony held at LG’s R&D Campus in the Gasan area of Seoul, Korea. Executives from both companies attended the ceremony. They included Young Ha Lee, President and CEO of LG Electronics Digital Appliance Company and Lynn S. Pendergrass, President and CEO, GE Consumer & Industrial - Americas.

LGE and GE have collaborated on cooking appliances since 1999, both in technologies and product development. This new agreement will help the companies strengthen their competitiveness worldwide. This agreement will be especially helpful to LGE, in its push to expand its presence in digital appliances globally. The company currently sells its products through all three of the top retailers in North America: The Home Depot, Sears and Best Buy.

LGE has previously entered into key partnerships with other top companies to build its technology and customer base. In 2000 the company partnered with Matsushita’s air conditioning division and in 2001 LG allied itself with both Microsoft and Intel in the home networking sector.

GE Consumer & Industrial, a $13bn business, uses innovative technologies and “ecomagination,” a GE initiative to aggressively bring to market new technologies that help customers and consumers meet pressing environmental challenges, to deliver comfort, convenience and electrical protection and control.