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Press Release

07/11/2006

CAFC rules in favor of LG Electronics

On July 7, the U.S. Appeals Court for the Federal Circuits (CAFC) sided with LG Electronics Inc. in computer patent infringement suits against Taiwanese PC manufacturers.

On July 7, the U.S. Appeals Court for the Federal Circuits (CAFC) sided with LG Electronics Inc. in computer patent infringement suits against Taiwanese PC manufacturers.

LG Electronics (LGE) brought patent suits against Taiwan-based PC manufacturers Quanta, Compal, and FIC in the Northern District of California in May 2000.

In several rulings ending in December 2004, the District Court ruled against LGE's charges of infringement. However, the Appeals Court comprehensively reversed the rulings of the District Court on July 7. Supported by the appellate ruling, LGE now has strong bases to pursue its claims of infringement in the District Court.

"LGE's patent value was supported by the ruling. So LGE will carry on active royalty negotiation with computer manufacturers," said Jeong Hwan Lee, a vice president for intellectual property at LGE. He added that, "LGE completed its royalty talks and entered into patent licensing agreement with over 10 PC manufacturers. And LGE plans to resume the negotiation at least with 30 companies."

The tussle between LGE and the defendants dates to 2000, when LGE filed suits against the Taiwanese companies. LGE's claims include infringement of its PCI patents, which involve core technology in personal computers. The Taiwanese companies have supplied notebook PCs and desktop PCs to famous U.S. PC companies.

PCI (Peripheral Component Interconnection) is a bus standard facilitating data transmission between microprocessor(s) and PC peripheral devices. The PCI bus is used by computer manufacturers throughout the world.

LGE has over 2,000 patents in the field of computer technology. In 2000, Intel obtained a license to use all the PC patents of LGE through a Patent License Agreement with LGE.

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