Samsung and LG Display have failed to negotiate a settlement in their patent dispute.
According to industry sources on June 11, the two LCD panel makers have recently decided to discontinue their negotiations for a patent settlement. It has been one year since the top management of both companies met with each other for the first time in March 2013, urged by the government.
The reason for the failure of the negotiation, despite the government’s involvement, lies in their differences on the issue of patent sharing. Samsung Display wants to reach a patent cross-licensing deal with LG Display, but LG is cautious about the issue.
An industry source said, “The management of LG Display apparently believes that they are slightly ahead of Samsung Display in technology.” The source added, “I think that both parties failed to negotiate, because some argued for the necessity of proper patent payments prior to patent sharing.”
As a result, sharing patents for display has become more difficult. Previously, the industry predicted that the two companies with tens of thousands of patents related to OLED and LCD would be able to improve their international competitiveness, if they reach an agreement.
An official at the Korea Display Industry Association explained, “Chinese, Japanese, and Taiwanese companies are actively seeking to catch up with Korean firms in the global display market.” The official added, “If the world’s largest and second-largest LCD panel makers reach an agreement, it will strengthen the position of the Korean display industry.”
In the meantime, both companies’ patent dispute was ignited in 2012 after several LG associates were indicted on charges of LG Display’s leakage of Samsung’s OLED panel technology. After that, Samsung Display started arguing against LG first by saying that LG is liable for damages. LG Display rejected the idea, which triggered the patent dispute. Eventually, each company filed two patent infringement lawsuits.
However, once the two firms started to negotiate, each of them dropped one case. Currently, LG Display’s 7 OLED technologies and Samsung Display’s 7 LCD technologies are at stake in the dispute between the two companies.