Universal Display and LG Display signed a new long-term OLED technology license agreement and supplemental material purchase agreement. The agreement runs till December 31, 2022.
Similarly to UDC's agreement with Samsung (signed in 2011), LGD gets non-exclusive license rights to manufacture and sell OLED displays, and will pay license fees and running royalties on its OLED product sales. UDC will also continue and supply phosphorescent materials for LG Display.
This agreement should be seen as hugely positive for UDC's investors. Regardless of the numbers, this means that UDC's patent cliff has been "delayed" to at east 2022, it fortifies LG's commitment to OLED technology and also means less reliance on SDC.