A Sticker

If you are like me, you have spent some time looking through Hardware Maintenance Manuals for ThinkPads. It was actually while looking at the HMM for the T41 to disassemble and remove the WLAN card that I noted some interesting references to LG-IBM branding. Specifically, stickers were to be placed over any replacement parts bearing the ThinkPad branding for the South Korean market.

One of many references to the LG-IBM models in the T40 HMM.
LG-IBM R40.
Photo generously provided by Hidde J.

A friend and avid ThinkPad collector Tasurinchi shared an article with me that mentioned the breakup of the deal. This was clearly the tip of the iceberg of an interesting story. We both knew about the Acer partnership where Acer was contracted out to build several laptops under the ThinkPad brand. However, it would appear that the ThinkPad R40 and R40e (pictured above) were built in South Korea in LG owned factories. The sticker located on the bottom of my R40 confirms this (Made in Korea) and the schematics as discovered by Thinkpads.com forum user Screamer found the manufacturers were “LG Gryphon” and “LG D3 Entry” respectively for these two machines.

Bottom label showcasing the LG-IBM branding.
Photo generously provided by Hidde J.

So where did it all begin?

A Partnership

In 1996, IBM entered into a partnership with LG to break into the Korean market. The arrangement created LG-IBM and saw IBM owning 51% of the company controlling the manufacturing and marketing of PCs while LG’s 49% was focused on other consumer electronics. This allowed IBM to break into the market, shipping their PC solutions and it gave LG an excellent opportunity to learn everything it could from IBM.

The LG-IBM PC LKB 0107 was seen at a thrift store. Photo by moghismv (https://www.reddit.com/r/MechanicalKeyboards/comments/jegu7j/anybody_know_how_much_this_keyboard_is_worth_lg/)
Top case of R40.
Photo generously provided by Hidde J.
The top case of an i-Series ThinkPad with the LG-IBM sticker. From Kbench.com

 

A Scandal

In 2004 the announcement came that the two companies would be splitting off, each essentially retaining their own rights to their respective properties. IBM would retain their rights to all of their trademarked properties like ThinkPad and LG would continue developing their own line of laptops called the Xnote. Interestingly enough, both IBM, LG-IBM and LG were targets of a bribery scandal that both parties claimed was unrelated to the announcement to split.

The two companies said the separation was unrelated to the indictments early this year of three officials of LG IBM and three from IBM’s Korea unit on charges of bribing government officials in order to win contracts to supply computer parts and services.

After the indictments were issued, IBM said that it had dismissed its three officials and that the three from LG IBM were no longer working there. The three former IBM Korea employees were convicted by a Seoul court in February, according to Reuters news agency. – Wall Street Journal September 15, 2004

The company was hit with a bribery scandal early this year. Former executives of IBM Korea have been jailed for bribing government clients and rigging bids, while officials of LG Electronics were fined. – Korea JoongAng Daily August 30, 2004

While these types of scandals weren’t unique to LG or IBM and weren’t likely directly related to the ending of the partnership, the details of these bribery scandals need to be read to be believed.

From 1998 to 2003, over $207,000 USD was paid in cash or gifts to officials by IBM-Korea and LG-IBM. These payments were delivered in large LG-IBM branded envelopes to shopping bags and exchanged in locations including but not limited to parking lots near the managers’ and officials’ places of work or home and on one occasion a parking lot of a local Japanese restaurant. All of these bribes were targeted at individuals making purchase decisions, ensuring that LG-IBM would win the contracts. These contracts were worth tens of millions of dollars leading to an “improper gift” of $9,546USD landing a contract valued at $1.3 million USD. IBM-China also had similar issues with bribery. For more details, see this document which outlines the details of these scandals. 

There is a more likely reason for the end of the partnership beyond these issues.

A Deal

During this time, IBM was in active talks with both Texas Pacific Group and Lenovo to sell off IBM’s PC division. Dell was also a contender for a brief amount of time. IBM CEO Samuel j. Palmisano the summer of 2004 was hammering out a complex deal with Yang Yuanqing (Lenovo) and it isn’t too hard to imagine that part of the preparations for negotiations would have involved complete ownership of control of all the markets IBM was present. This would be especially true for a purchasing company that was already established in that area. This would mean that LG-IBM would need to be renegotiated or simply cease to exist. It isn’t too hard to see which makes more sense to both parties to create a clean and tidy deal.

IBM would sell Lenovo PCs through its sales force and distribution network. IBM also would provide services for Lenovo PCs—and allow Lenovo to use the vaunted IBM brand name for five years. In turn, Lenovo, leveraging its connections with the government’s Chinese Academy of Sciences, would help IBM in the fast-growing China market. – The Race for Perfect: Inside the Quest to Design the Ultimate Portable Computer, Steve Hamm

An Ending

So overall the historic deal between IBM and LG seemed to be mutually beneficial to both parties. IBM gained access to another market (under a different brand) and LG gained access to IBM’s information and experience. When it came time for IBM to sell its PC Division though, it was clear that IBM would need to distance itself from IBM-Korea and LG-IBM as quickly as possible to ensure that the scandals and exclusive access to the South Korean market wouldn’t sour any potential deal with an interested party.

But what about the penalties for the previously mentioned scandals? Who had to take responsibility?

Ultimately that would fall to IBM. While they didn’t own several of the assets that would have been involved, it makes no sense for the new owners to be fined for the mistakes of the previous owners.

On March 18, 2011, without admitting or denying the SEC‘s allegations, IBM consented to the entry of a final judgment that permanently enjoins the company from violating the books and records and internal control provisions of the FCPA. In addition, IBM consented to pay disgorgement of $5,300,000, $2,700,000 in prejudgment interest, and a $2,000,000 civil penalty.

Steps Taken by State Parties to Implement and Enforce the Convention on Combating Bribery of Foreign Public Officials in
International Business Transactions
AS OF JUNE 2011 WORKING GROUP ON BRIBERY MEETING

Organisation for Economic Co-operation and Development (OECD)

It would appear the LG and ThinkPad story is not over yet. Fast forward to the year 2021 and it seems that LG might have run afoul with Lenovo with LG’s ThinQ branding coming a bit too close to the well-established Think branding they inherited from IBM. To read the case details, including court documents and its status, follow this link. or you can head right to the source at the United States Trademark and Patent Office.

The TrackPoint is a polarizing way to interact with your computer. You either love it or hate it. Several journalists and technology writers have said that it seems out of place on a modern computer with TrackPads now being the norm. However, the TrackPad is not always as useful as the TrackPoint, especially in certain circumstances. As you might know from a previous article on this website, I like TrackPoints.

Jul
22

TrackPoint Keyboards

If you are looking for a greater, in-depth article, please consider checking out this fantastic summary of several of the keyboards below here. PS/2 Era or Earlier IBM Model M13 A classic with Buckling springs. Very rare with no active listings on eBay. For more information on this beauty, check out LGR’s episode where he […]

So as I was doing some digging around for patent drawings and such, I found some really cool documents and photos. These were found on a Microsoft Research website archive called the Buxton Collection and I am uploading them below just in case the page is ever removed. This article will also serve as a companion piece to a video that I am currently editing that is related to this subject, but wouldn’t really focus on some of these neat little details.

IBM T. J. Watson Research Paper TrackPoint IBM

TrackPoint Interact 90

Buxton Collection Story(PDF of website above)

The following images below come from an issue of Interactions, September-October 1997 “A Conversation with Ted Selker” and give some insight to ideas they had for TrackPoint’s future.

For more information on the TrackPoint Mouse, check out the following links to the G1, G2 and G3 variants. I’m not sure if any of these three examples exist in the wild, but ScrollPoint technology was developed and released to the general public which is similar but not identical. The ScrollPoint II and onward series has the most in common with the G3 type which featured a different cap/interface. The ScrollPoint I more closely resembles the G1 and G2.

As an added bonus, here is a launch video for the TrackPoint. This promotional video by IBM features Ted Selker introducing the TrackPoint in its early stages before it would make its most memorable appearance on the ThinkPad 700C.

I’ve also recently found this video that was submitted as part of a Issues 55-56 of ACM SIGGRAPH Video Review.

In-Keyboard Analog Pointing Device – A Case for the Pointing Stick Joe Rutledge, Ted Selker, IBM

CHI ’90 Technical Video Program

Session: New Techniques

Abstract A pointing device which can be operated from typing position avoids time loss and distraction. We have built and investigated force-sensitive devices for this purpose. The critical link is the force-to-motion mapping. We have found principals which enable a force joystick to match the function and approach the performance of a mouse in pure pointing tasks, and to best it in mixed tasks, such as editing. Examples take into account task, user strategy and perceptual- motor limitations.

If you follow me on Twitter, consider posting your favourite TrackPoint photo on this thread: