After the Tariff War Comes the Patent War;
“K-NPE” is the Opportunity
While the previous column covered opportunities and examples in the U.S. market, this column discusses the changes in the U.S. patent market and the opportunities available to Korean companies. As of 2026, the U.S. intellectual property (IP) environment is facing an unprecedented turning point. Patents have become a core weapon in the U.S.-China trade war. Moving beyond the era of tariff wars, the U.S. is entering the vortex of a full-scale “patent war”.
The Era of “0% Invalidation Rate” and Trump’s Strong Executive Orders
The Donald Trump administration recently issued an executive order that is overwhelmingly favorable to patent holders. The core of this order is to raise the threshold for Inter Partes Review (IPR), preventing large tech companies from easily neutralizing the rights of smaller patent holders. This executive order is based on the International Emergency Economic Powers Act (IEEPA) and the Reciprocal Trade Act. The U.S. government explains that protecting innovators' IP is directly linked to "national economic security," a move fully supported by the U.S. Inventors Association.
Figure 1: The "Holy Land" of U.S. patent wars, the Marshall Court — Sam B. Hall Jr. Federal Building and United States Courthouse.
Particularly in cases where litigation is proceeding rapidly in courts like those in Texas, the Patent Trial and Appeal Board (PTAB) has strengthened guidelines to discretionarily refuse the commencement of invalidation trials. This has led to a phenomenon where the IPR rejection rate in certain fields is approaching 0%. This signifies the opening of a “Golden Age for Patent Holders,” where one can claim massive damages without the fear of patent invalidation once a patent is secured.
The USPTO Controlled by “Financial Technicians”: The Emergence of Director John Squires
At the forefront of this policy shift is a groundbreaking appointment. Commerce Secretary Howard Lutnick appointed John A. Squires, an IP finance expert from Goldman Sachs and a business partner at Cantor Fitzgerald, as the Director of the USPTO (U.S. Patent and Trademark Office).
Figure 2: USPTO Director Squires issued a power of attorney to Deputy Director Morgan Stewart to operate the PTAB's discretionary refusal decision program.
Director Squires has a history of monetizing numerous patent portfolios on Wall Street and is classified by the industry as a pro-NPE (Non-Practicing Entity) expert. Commerce Secretary Howard Lutnick, himself an IP finance expert listed as an inventor on over 400 patents, emphasizes that “patents must become profit-generating financial products”.
This clearly demonstrates that while the U.S. cites the protection of domestic innovators as justification, it practically intends to use U.S. patent courts as a legal route to extract massive patent damages from foreign companies, such as those from China. Consequently, patent litigation in the U.S. is surging. According to the “2026 Patent Litigation Report” by Lex Machina, Wi-Fi related SEP (Standard Essential Patent) litigation increased by approximately 71% in 2025 compared to 2020. Furthermore, patent infringement damage awards have increased by more than 20% year-over-year, with the patent holder win rate exceeding 70%.
SPH America and Netlist: The Potential of K-NPE
For Korean companies with excellent technology, this represents an opportunity to earn money through IP in the U.S.. Historically, Korean companies focused on production technology and yield, often using U.S. patents defensively to lower settlement costs. Now is the time to shift from passive FTO (Free To Operate) analysis to aggressive patent strategies.
Korean NPEs have already shown outstanding performance on U.S. soil:
SPH America: Founded by attorney Choong-soo Park, this firm utilized IP containing Korean core technologies to secure hundreds of billions of won in royalty revenue from global IT giants like Apple, Nokia, and Google.
Netlist: Founded in the U.S. in 2000 by Chun-gi Hong (formerly of LG Semiconductor), this NASDAQ-listed firm holds core semiconductor patents for HBM and DDR5. It recently secured a judgment of approximately 1 trillion won against Samsung Electronics and Micron.
Figure 5: A recent (February 20, 2026) Federal Circuit Court of Appeals ruling received by Netlist.
Other examples include KT signing licensing agreements with U.S. carriers using its communication standard patents, and LG Display gaining an advantage in patent litigation against Chinese firms. New IP finance companies like Caspian Capital and Hype IP are also challenging the U.S. patent litigation market based on superior Korean IP.
The Task for Yeouido: Establishing “Private IP Funds”
According to statistics from U.S. media and the investment industry, successful IP litigation funds can yield returns exceeding 200% (Burford Capital, 2025), far surpassing stock or real estate funds.
Korean companies should focus on:
Concentrating on nurturing and discovering patents based on “original technology” rather than just cost-reduction technology.
The Korean financial sector and venture capitalists developing internal IP analysis capabilities to establish private “IP Infringement Funds” aimed at high returns.
K-NPE should be defined as a national strategic industry that earns foreign currency, beyond simple patent management.
Conclusion: The Key to Startup Exits is in U.S. Patents
The core reason why Korean startups like Hyperconnect were sold to Match Group for approximately 2 trillion won and Sualab was acquired by Cognex for 230 billion won was their robust U.S. patent portfolios. When U.S. companies engage in M&A, they first evaluate the strength of the "shield" (to protect technology) and the "sword" (to attack competitors).
To "make money from the U.S.," companies must pay close attention to the direction of the patent wars unfolding in America.
After the Tariff War Comes the Patent War;
“K-NPE” is the Opportunity
While the previous column covered opportunities and examples in the U.S. market, this column discusses the changes in the U.S. patent market and the opportunities available to Korean companies. As of 2026, the U.S. intellectual property (IP) environment is facing an unprecedented turning point. Patents have become a core weapon in the U.S.-China trade war. Moving beyond the era of tariff wars, the U.S. is entering the vortex of a full-scale “patent war”.
The Era of “0% Invalidation Rate” and Trump’s Strong Executive Orders
The Donald Trump administration recently issued an executive order that is overwhelmingly favorable to patent holders. The core of this order is to raise the threshold for Inter Partes Review (IPR), preventing large tech companies from easily neutralizing the rights of smaller patent holders. This executive order is based on the International Emergency Economic Powers Act (IEEPA) and the Reciprocal Trade Act. The U.S. government explains that protecting innovators' IP is directly linked to "national economic security," a move fully supported by the U.S. Inventors Association.
Particularly in cases where litigation is proceeding rapidly in courts like those in Texas, the Patent Trial and Appeal Board (PTAB) has strengthened guidelines to discretionarily refuse the commencement of invalidation trials. This has led to a phenomenon where the IPR rejection rate in certain fields is approaching 0%. This signifies the opening of a “Golden Age for Patent Holders,” where one can claim massive damages without the fear of patent invalidation once a patent is secured.
The USPTO Controlled by “Financial Technicians”: The Emergence of Director John Squires
At the forefront of this policy shift is a groundbreaking appointment. Commerce Secretary Howard Lutnick appointed John A. Squires, an IP finance expert from Goldman Sachs and a business partner at Cantor Fitzgerald, as the Director of the USPTO (U.S. Patent and Trademark Office).
Director Squires has a history of monetizing numerous patent portfolios on Wall Street and is classified by the industry as a pro-NPE (Non-Practicing Entity) expert. Commerce Secretary Howard Lutnick, himself an IP finance expert listed as an inventor on over 400 patents, emphasizes that “patents must become profit-generating financial products”.
This clearly demonstrates that while the U.S. cites the protection of domestic innovators as justification, it practically intends to use U.S. patent courts as a legal route to extract massive patent damages from foreign companies, such as those from China. Consequently, patent litigation in the U.S. is surging. According to the “2026 Patent Litigation Report” by Lex Machina, Wi-Fi related SEP (Standard Essential Patent) litigation increased by approximately 71% in 2025 compared to 2020. Furthermore, patent infringement damage awards have increased by more than 20% year-over-year, with the patent holder win rate exceeding 70%.
SPH America and Netlist: The Potential of K-NPE
For Korean companies with excellent technology, this represents an opportunity to earn money through IP in the U.S.. Historically, Korean companies focused on production technology and yield, often using U.S. patents defensively to lower settlement costs. Now is the time to shift from passive FTO (Free To Operate) analysis to aggressive patent strategies.
Korean NPEs have already shown outstanding performance on U.S. soil:
SPH America: Founded by attorney Choong-soo Park, this firm utilized IP containing Korean core technologies to secure hundreds of billions of won in royalty revenue from global IT giants like Apple, Nokia, and Google.
Netlist: Founded in the U.S. in 2000 by Chun-gi Hong (formerly of LG Semiconductor), this NASDAQ-listed firm holds core semiconductor patents for HBM and DDR5. It recently secured a judgment of approximately 1 trillion won against Samsung Electronics and Micron.
Figure 5: A recent (February 20, 2026) Federal Circuit Court of Appeals ruling received by Netlist.
Other examples include KT signing licensing agreements with U.S. carriers using its communication standard patents, and LG Display gaining an advantage in patent litigation against Chinese firms. New IP finance companies like Caspian Capital and Hype IP are also challenging the U.S. patent litigation market based on superior Korean IP.The Task for Yeouido: Establishing “Private IP Funds”
According to statistics from U.S. media and the investment industry, successful IP litigation funds can yield returns exceeding 200% (Burford Capital, 2025), far surpassing stock or real estate funds.
Korean companies should focus on:
Concentrating on nurturing and discovering patents based on “original technology” rather than just cost-reduction technology.
The Korean financial sector and venture capitalists developing internal IP analysis capabilities to establish private “IP Infringement Funds” aimed at high returns.
K-NPE should be defined as a national strategic industry that earns foreign currency, beyond simple patent management.
Conclusion: The Key to Startup Exits is in U.S. Patents
The core reason why Korean startups like Hyperconnect were sold to Match Group for approximately 2 trillion won and Sualab was acquired by Cognex for 230 billion won was their robust U.S. patent portfolios. When U.S. companies engage in M&A, they first evaluate the strength of the "shield" (to protect technology) and the "sword" (to attack competitors).
To "make money from the U.S.," companies must pay close attention to the direction of the patent wars unfolding in America.