Erencan YılmazIn a surprise and unprecedented step, LG Display has assigned 70 of its liquid crystal display (LCD) related patents in the United States to its rival, Samsung Display. The transfer is especially prominent considering that Samsung Display shut down its LCD business three years ago. It is reported that by adding these new patents, Samsung Display is likely to attain a more favorable position in its current patent wars with Chinese competitors like BOE.
This unprecedented transfer is a first in the history of the two South Korean display rivals and could potentially change the contours of intellectual property wars in the global display industry, and it speaks of a strategic change in competitive edge through patent portfolios.
Unprecedented Patent Exchange Details
This recent assignment of 70 US patents is not a one-off transaction. In June this year, LG Display also assigned 55 of the same LCD patents to Samsung Display in South Korea. Analysis shows that 8% of these Korean patents are in the same patent families as those assigned in the US, pointing to a coordinated and significant transfer of intellectual property.
Importantly, this represents the first time that LG Display has ever assigned patents to Samsung Display, and, on the other side, Samsung Display had never assigned patents to LG Display before. This exchange highlights a special strategic cooperation or deal in the fiercely competitive display industry.
Strategic Significance in Current Patent Battles
This step has important implications, particularly in light of Samsung Display’s current patent wars with Chinese rivals. Samsung Display has filed patent infringement complaints against BOE and China Star Optoelectronics Technology (CSOT) in the United States, with the cases now making their way through the International Trade Commission, along with federal and local courts. BOE has retaliated by filing two counter-complaints against Samsung Display at the federal level.
Though most of these ongoing lawsuits are predominantly about OLED technology, adding LCD-related patents has the potential to cause more harm to the Chinese firms. This is mainly due to the fact that the worldwide LCD market is much larger than the OLED market, with wider market repercussions for infringement claims.
Interestingly, the patents Samsung Display has bought from LG Display encompass those covering IPS (In-Plane Switching) technology that enhances the viewing angles of LCD panels. BOE was previously accused of infringing upon LG Display’s IPS patents, which makes this purchase particularly effective for Samsung Display’s litigation strategy.
This adds further strength to Samsung Display, after it purchased 107 US LCD patents from Taiwan’s AUO (AU Optronics) last June. Notably, this patent move comes even as the television business of Samsung is in active discussions with BOE for the purchase of additional LCD panels, reflecting a multifaceted dynamic between legal disputes and supply chain needs within the overall display industry environment.
Source: TheElec
