LG Electronics Inc. is reported to be forming a company to manage licenses and royalties for its patents in the area of organic light emitting diodes (OLeds) and Oled displays, according to the Korea IT Times.

Eastman Kodak Co. (Rochester, New York) recently announced that it would sell its OLED business and intellectual property to LG while entering into a cross-license agreement to give each broad access to the other's patent portfolio. As such it is expected that the Kodak patents will be placed in the LG OLED portfolio. LG OLED is expected to sign contracts with LG affiliates to share patents with them.

LG OLED is being jointly financed by LG Electronics, LG Display, and LG Chem and is due to be launched before the end of this year, the report said. The move is being seen as a part of a battle with Samsung Electronics Co. Ltd., which formed Samsung Mobile Display as an OLED unit in January 2009.

LG is expected to ratchet up its offensive to seize the market for OLED displays as well as for OLed lighting, the report said.