Samsung 1998 Annual Report Download - page 29

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R
&
D
RESEARCH & DEVELOPMENT
[patents & licensing] In 1998, Samsung was awarded 1,306 patents in the U.S. alone,
making us the world’s sixth most active company in this category. We currently hold
1,600-plus patents worldwide covering digital TV and other core digital technologies.
Overall, technology licensing generated US$25 million in income during the year, a
figure we expect to triple to US$75 million in 1999. In addition to providing anoth-
er revenue stream, this licensing is opening the door for cross-licensing agreements with
other key digital patent holders in the DVD player, digital camcorder, digital satellite
broadcast receiver, digital TV, and set-top box fields, enhancing our competitiveness
across the entire digital product spectrum.
[alliances] Many of today’s high-technology products require expertise across a broad
range of fields, making it financially impossible or risky for one company to do it all.
At Samsung, we’re partnering with industry leaders like Intel (Rambus®DRAM), Microsoft
(Windows CE, home networking), Compaq (Alpha processor), Siemens (smart card ICs),
IDC (B-CDMA WLL), Cisco Systems (cable modems), Sun Microsystems (Java soft-
ware, home networking), Thomson Multimedia (TVs, VCRs, DVD players), Toshiba
(VCRs), Lexmark (printers), and others to create best-of-breed products in each of our
business areas.
[multimedia & home appliances] Samsung continues to make advances in the way
people watch TV. From CRT-based flat-screen TV to the first mass-produced 55-inch
digital TV sets, our aggressive research and development is creating a new era in dis-
play technology. During the year, We also developed the world’s first digital VCR that
meets the standards set by the High Definition Digital VCR Committee. Utilizing the
same 6mm tape mini and standard cassettes used for the consumer DV (digital video)
format, the VCR records up to 270 minutes (50Gb) of MPEG-2 (Moving Pictures Experts
Group-2) compressed video. The VCR interfaces with digital TVs and set-top boxes
via an IEEE 1394 (Institute of Electrical and Electronics Engineers) interface, the emerg-
ing interconnect method of choice for digital home entertainment systems. With this
development, we now possess technology covering all aspects of digital TV reception,
recording, display, and interface, enabling us to compete with the best in the indus-
try for the huge multi-billion dollar replacement market the transition to digital
broadcasting will bring.
[information & communications] Samsung continued to set the pace for innova-
tion in the mobile phone market in 1998 with the development of the world’s first sub-
Billions of Korean Won
R&D expenditure
1,277
1,268
1,664
96 97 98
1,500
1,400
1,300
1,200
1,600
28