Korean firms face tenfold U.S. patent costs

If the U.S. patent system overhaul being considered by the Donald Trump administration takes effect, maintenance costs for South Korean companies could surge by nearly tenfold, a recent analysis shows. Industry giants such as Samsung, SK, and LG, each holding more than 20,000 patents in the United States, are likely to face a significant increase in patent-related fees.

In a report released Monday, Kim Doo-eon, an analyst at Hana Securities, said the core of the proposed reform lies in how patent value is assessed, warning that the method of valuation could sharply increase costs for companies.

Patent holders in the United States currently pay fixed maintenance fees to the U.S. Patent and Trademark Office, typically ranging from several thousand dollars to as much as $10,000 per patent. But according to the Wall Street Journal and other sources, Commerce Secretary Howard Lutnick is reviewing a plan to charge fees equivalent to 1 to 5 percent of each patent’s value, aiming to boost government revenue.

To simplify his model, Kim assumed the total value of patents would equal 10 years of maintenance fee revenue collected by the U.S. Patent and Trademark Office. Based on that estimate, he calculated that the cost per patent could reach $115,000, or about 160 million won, with the total fee burden for South Korean firms rising to $2.66 billion.

South Korean companies are estimated to have paid about $270 million in patent maintenance fees last year, meaning the projected cost would be 9.9 times higher. The Wall Street Journal also noted that the change would make the United States an international outlier and could spark global backlash, highlighting that foreign firms such as Samsung and LG are among the country’s largest patent holders.

However, some experts say the reform could also present an opportunity for South Korean companies. They note that the proposed changes are not only intended to raise government revenue but may also serve as leverage in trade negotiations with China set for three months from now. The overhaul could be used as a counterweight to China’s rare earth export restrictions, given that many Chinese companies also hold patents in the United States.


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