LG and Samsung battle heating up

Posted on : 2012-09-28 11:40 KST Modified on : 2019-10-19 20:29 KST
Two electronics giants going to court over patent dispute in latest phase of conflict

By Kim Jin-cheol, staff reporter

Their technology fight between LG and Samsung over everything from organic light-emitting diodes (OLEDs) to refrigerators is going from heated words to litigation. LG has been ramping up its legal offensive, saying it's taken all it can of Samsung's attacks. Samsung is countering that LG is trying to hinder it after failing to bust out of its own performance slump.

LG Display filed suit at Seoul Central District Court on Sept. 27, seeking damages and a patent infringement ban against Samsung Electronics and Samsung Display. During an emergency press conference that afternoon at its Twin Towers in Seoul's Yeouido neighborhood, LG said it had filed suit over patent violations by five Samsung mobile devices, including the Galaxy S3 smartphone.

"The organic light-emitting diode panels produced by Samsung Display, and the mobile devices Samsung Electronics built with these panels, constitute a serious infringement of seven key LG patents," said LG Display executive director Lee Bang-soo.

The patents in question involve technology for OLED heat protection, narrow bezels, and panel power supply siring. The devices cited were the Galaxy S2, Galaxy S2HD, Galaxy S3, Galaxy Note, and Galaxy Tab 7.7.

Lee explained that the suit was filed "to protect our technology that we spent many years and a huge amount of R&D, money, and manpower developing."

"Samsung needs to stop at once with its improper use of patents and pay a fair price for using patented technology," he added.

Now that LG had filed its suit, Samsung Display is considering taking legal action after examining the areas in question.

"Samsung has obtained far more OLED technology patents than LG, so there's no reason for us to violate theirs," the company countered.

LG's patent suit is just the latest shot in an ongoing feud between the two companies. The technology battle over OLEDs has been especially heated this year. Previously, Samsung opened fire at LG for allegedly leaking OLED technology. In July, LG executives and former and current Samsung researchers were indicted for leaking Samsung OLED television technology. At the time, Samsung issued a statement in the names of its employees accusing LG of "systematically poaching human resources and technology." LG called this "defamation and an exaggeration of the situation's significance." It also said Samsung's real goal was "to crack down on internal personnel after a reorganization."

On Sept. 5, Samsung went to court demanding an injunction barring LG Display from violations of OLED technology and other areas. In a sense, the LG suit is a defensive response to this offensive. Samsung was dismissive, saying LG filed suit "to shed the negative image that resulted from the technology leaks."

The ‘he said, she said’ battle recently moved over into refrigerators. On Aug. 22, Samsung twice posted product comparison videos online charging LG with false labeling of refrigerator capacity. LG responded on Sept. 24 by filing for an advertising ban injunction on the videos. Samsung said the capacity claims on LG's refrigerators "can't be trusted," while LG argued Samsung crossed the line with its attacks because the officials in charge of appliance efforts there are overzealous in their marketing.

Feuding between the two companies is nothing new. In Oct. 2011, LG blasted Samsung for overheating issues when it released its new smartphone, showing a video of butter melting on a Samsung product. In 2009, it put down Samsung 3D televisions in a blind test. In 2006, LG won an advertising ban injunction after Samsung put out advertisements criticizing the hard disk life, noise, and overheating of LG plasma display panel televisions.

Both sides have gotten dirty in the product battle, but observers said LG's recent strategy shows it moving from defense to offense.

A senior official with the company said it was "taking up with the gauntlet after suffering Samsung's hampering for too long."

Another take on it connects it with LG's worries about poor sales figures. A Samsung official said, "It looks to me like they can't compete with their products, so they're trying to do some 'noise marketing' by taking things to court."

LG chairman Koo Bon-moo redoubled calls for "market leadership" on Sept. 26, saying "most of the project have been unable to clear the 'leading company' wall." He also pointed to OLED products as a leading business area.

Please direct questions or comments to [englishhani@hani.co.kr]

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