ODD Patent Suit

LG Innotek won the first trial of a patent suit against Japanese electric motor-maker Nidec Corporation over optical disk drive (ODD).
LG Innotek won the first trial of a patent suit against Japanese electric motor-maker Nidec Corporation over optical disk drive (ODD).

 

LG Innotek, a parts-making unit of LG Group, announced on September 29 that it won the first trial of a patent suit against Japanese electric motor-maker Nidec Corporation. The ruling came after the Korean parts-maker filed a lawsuit against Nidec in January of last year, alleging the Japanese firm infringed its patents related to optical disk drive (ODD). The suit was filed at the Beijing Intellectual Property Court where their production facilities are located. 

The patents that the Japanese firm allegedly infringed are technologies that prevent foreign substances from flowing in the inside of motors. Nidec produces motors for personal computers, home appliances, automobiles and manufacturing equipment.

LG Innotek and Nidec used to vie for the leadership position in the market for spindle motors used in optical disk drive. Spindle motors are small-sized precision parts that spin the disk inside of ODD, including DVD-ROM drive. Nidec held back LG Innotek with its patents.

The struggle between the two companies ended last year when LG Innotek pulled out of the ODD motor business on the grounds that the market growth potential is low. Although the struggle was over, the patent war continued as the precise motor technologies are still related to LG Innotek’s car parts business, which is its new growth engine.

If Nidec does not appeal within 30 days, the ruling of the first trial will become the final ruling. Then, the company should compensate LG Innotek for damages and is no longer allowed to produce and sell the related-products.

“The recent ruling has proved the competitiveness of the company’s precise motor technologies and patents,” said Kim Jin-hyun, an executive at LG Innotek’s patent division. “The company would continue to actively protect its intellectual properties, which are secured by our creative ideas and perpetual challenges, not to be wrongly violated.”

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