South Korea's telecom carriers are intensifying a race to secure overseas patents on next-generation network technologies such as 6G and quantum communications. SK Telecom (017670) and KT are expanding their patent portfolios to include technologies that combine artificial intelligence with next-generation networks, while LG Uplus is stepping up overseas filings in areas including low-earth-orbit satellite networks. The strategy is to lock in overseas rights to core technologies in mobile communications, AI and quantum communications to prepare for competition in next-generation networks and to turn those rights into revenue-generating assets.
The three carriers held at least 12,924 patents and related rights as of the end of June, according to their first-half reports released on the 28th. KT held 6,038 registered patents, including 3,848 in South Korea and 2,190 overseas, while SK Telecom held 4,731, including 2,869 domestically and 1,862 abroad. LG Uplus held 2,155 registered patents and utility models in South Korea and did not separately disclose the size of its overseas patent holdings.
Overseas patent holdings at KT and SK Telecom have been growing. KT's overseas registered patents rose 20.9% over three years, to 2,190 in the first half of this year from 1,811 in the first half of 2023. SK Telecom's increased 14.2% over the same period, to 1,862 from 1,631. Overseas patents account for 36.3% of KT's portfolio and 39.4% of SK Telecom's.
The carriers are concentrating in particular on securing overseas rights to next-generation network technologies such as quantum communications and edge computing. KT has obtained patents in the United States and Europe covering quantum key distribution (QKD), including technology that keeps encryption keys flowing reliably even when some quantum communication channels fail. SK Telecom has registered technology in the U.S. related to edge computing and next-generation radio access network (RAN) architecture.
Technologies combining AI with next-generation networks also stand out among international applications that have not yet been granted as patents in individual countries. KT is filing patent applications in advance for AI and machine learning-based communication technologies that could be adopted as 6G international standards, preparing for the standardization process. One example is a conditional handover technology using predictions from AI and ML models, which KT filed as a PCT international application. Based on the AI predictions, a base station provides conditional handover information to a device, and the device switches base stations once it measures signal strength and quality that meet certain conditions. If the technology is later reflected in an international standard, other companies would be able to use it in line with that standard, and KT could monetize its patents through licensing.
In September last year, SK Telecom filed a PCT international application for technology that links radio access networks with distributed edge data centers to allocate AI computing workloads efficiently. When a device requests AI computation, the technology distributes the workload to a suitable location based on conditions across the network and multiple edge data centers. The company is also working to feed research results into global standards discussions alongside its AI-RAN field trials. LG Uplus is likewise pursuing overseas rights, jointly developing low-earth-orbit satellite network technology with KAIST and filing international applications.
Carriers are investing in overseas rights to next-generation technologies because patents included in international standards can open the door to large licensing markets. Global patent analytics firm LexisNexis IP estimates the 5G patent licensing market at about $15 billion a year. As the market grows, telecom and equipment companies at home and abroad are competing to patent candidate technologies — including AI-based network control, RAN and edge computing — before standards are finalized.
Korean carriers are also moving to expand licensing businesses built on their intellectual property, including patents on next-generation technologies as well as other technology and content. At its annual shareholders meeting in March, KT added "management, licensing and other disposal of intellectual property rights" to its articles of incorporation. The company is currently selling patents, transferring technology, granting licenses and joining patent pools, and plans to broaden both the scope and the methods of such activity. SK Telecom has participated in global patent pools since the LTE era and earns royalty income by licensing patents in areas including video codecs and mobile communications.
"With 6G standards still undecided, global competition is underway over which technologies make it into the standard," an industry official said. "Developing core technologies and securing patent rights in major countries before standardization can determine future technological competitiveness and licensing leverage."
