Hon Hai, Sharp to set up joint venture for IPR management

Hon Hai, Sharp to set up joint venture for IPR management

Taipei, Sept. 13 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. has agreed to set up a joint venture with Japan's Sharp Corp., the newly acquired subsidiary of the Taiwanese firm, to manage the Japanese company's intellectual property rights (IPR).

In a statement released by Sharp on Tuesday, Hon Hai, which owns a 66 percent stake in Sharp, has planned a joint venture with the Japanese subsidiary and the new company is scheduled to be established on Oct. 3.

Through ScienBizi Consulting Inc., a unit of Hon Hai, the Taiwanese firm will set up an IPR joint venture which will be called ScienBiziP Japan Co. (SBPJ) with Sharp to hold a 51 percent stake in the new company, ScienBiziP to have 20 percent, and the management of SBPI to own the remaining 29 percent.

The new company will be under the corporate umbrella of Sharp, which will take eight seats on the board of directors at SBPJ.

According to the statement, SBPJ will take the responsibility of managing Sharp's IPRs, a move which is expected to maximize the use of the Japanese electronics maker's intangible assets and eventually boost the efficiency of its operations and strengthen its bottom line.

In the future, Sharp is likely to license other entities to use its IPRs and rake in profit from the services. Through the new mechanism, Sharp said that it will closely guard its IPRs and not allow any leaks from the company.

Hon Hai completed a deal to buy a 66 percent stake in Sharp for US$3.5 billion on Aug. 12 to become the largest shareholder of the financially struggling Japanese firm. Following the acquisition, Hon Hai executive Tai Cheng-wu took over as president of Sharp from his predecessor Kozo Takahashi after the board of directors approved the appointment on Aug. 13.

Ahead of the announcement to set up SBPJ, Tai had said in a report in the Nihon Keizai Shimbun that Sharp should carefully manage its large IPR portfolio as these rights have been precious assets for Sharp. Tai stressed that Sharp would not dispose of its IPRs.

A month after Hon Hai acquired the majority stake in Sharp, the news media in Japan reported that Tai has come up with a series of measures to reform the Japanese firm's structure, including its personnel system, and any changes in personnel will not be finalized unless the president's office issues a green light.

Tai said in the reports that Hon Hai has vowed to lend its full support to Sharp in product planning, development and marketing, and will do its best to help the subsidiary integrate its manufacturing resources. According to the reports, Wu has set a goal to make Sharp's solar energy operations profitable by the end of March 2018. (By Jalen Chung and Frances Huang)

Updated : 2021-04-12 06:53 GMT+08:00