LG licensing patents for U.S. digital TV standard

Zenith Electronics Corp. will license its digital television reception technology to Toshiba. LG Electronics, which owns the U.S.-based television maker, said yesterday Toshiba was the first television manufacturer to license Zenith’s technology. Zenith currently holds core patents essential to the production of digital television receivers compliant with the U.S. digital television standard. The digital television standard was adopted by the U.S. Federal Communications Commission in 1996. Recent agency regulations state that 50 percent of television sets 36 inches or larger released after July must have receiver tuners for terrestrial digital broadcasting. Beginning in July next year, all televisions larger than 36 inches will need the receivers. In 2007, all televisions larger than 13 inches will require receivers. “The United States holds more than 40 percent of the global digital television market and many countries follow the U.S. standard for digital broadcasting. All manufacturers of digital televisions, set top boxes, and broadcasting equipment must first sign a licensing contract with Zenith,” said LG Electronics executive director Ham Soo-young. The patents are worth $100 million a year, an LG official said. Zenith was bought by LG Electronics in1995. by Wohn Dong-hee