One recent example of an open cross-licensing
deal also illustrates the transfer of technology from
Japan to Asia. In April 1992 South Korea’s Samsung
Electronics and Fujitsu entered a 5-year broad cross licensing
agreement that allows each access to the
other’s microchip technologies patented in the US,
Japan and Europe. Under the agreement Samsung
also paid Fujitsu ¥4 billion to compensate for Fujitsu’s
technological edge. This was some 25% of
Samsung’s 1991 pre-tax profits and the first time
that Fujitsu had received royalties from a Korean
firm in a cross-licensing agreement. A Japanese industry
official, who asked not to be identified was
reported as saying that “Paying large royalties will
boost South Korean makers’ production costs, making
it hard for them to pursue their low-cost, lowprice
business strategy”. (Miyake et al., 1992.).