Press Release

04/03/2007

LG Electronics Settles Patent Lawsuits against Compal Electronics and First International Computer

LG Electronics (LG), a leader in consumer electronics and mobile communications, today announced that the company had reached a settlement in its patent law suits filed against Taiwanese computer makers Compal Electronics and First International Computer (FIC) for infringement of LG's patents on Peripheral Component Interconnection (PCI) technology.

LG Electronics (LG), a leader in consumer electronics and mobile communications, today announced that the company had reached a settlement in its patent law suits filed against Taiwanese computer makers Compal Electronics and First International Computer (FIC) for infringement of LG's patents on Peripheral Component Interconnection (PCI) technology.

PCI is an industry-standard technology required for effective data transfer between computer motherboards and peripheral devices, which is fundamental to the operation of computers. The two Taiwanese companies have been providing OEM PCs equipped with LG's proprietary technology to major U.S. computer manufacturers.

LG first presented its cases to the U.S. District Court, Northern District of California, requesting enjoining from patent infringement and awarding damages to LG. The case against FIC was filed in May 2000 and Compal in April 2001. In July 2006, the U.S. Court of Appeals reversed and returned the decision of the trial court, which had originally decided that the two Taiwanese companies did not violate LG's patents. As appellate decisions regarding patent cases are conventionally regarded as final decisions, the case was decided in favor to LG Electronics. This patent case was set for trial at U.S. District Court, Northern District of California in January 2008.

"Intellectual property is one of LG's essential assets, which we will always uncompromisingly protect," said Jeong Hwan Lee, Executive Vice President and Head of LG Electronics Intellectual Property Center. "The U.S. Court of Appeals decision reaffirms some of our key computer technology patents. This settlement will positively impact our negotiations with other PC makers."

LG's PCI patent applies to all computers manufactured worldwide, including laptops and desktops. LG already has PCI-based royalty contracts with ten PC makers, and is pursuing contracts with thirty other computer manufacturers.

LG holds 2,000 technology patents for PCs. In 2000, Intel and LG made a licensing contract allowing Intel to use all of LG's patented technologies.
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