Tuesday, May 4, 2010

AUO prevails in patent dispute with LG Display

AU Optronics (AUO) has announced that following the finding by the US District Court for the District of Delaware on February 16, 2010 that LG Display (LGD) infringed all four of the AUO patents asserted at trial, the court further concluded on April 30, 2010 that AUO did not infringe any of the four patents asserted at trial by LGD, indicating that AUO has prevailed in this patent litigation.

This matter began in December 2006 when LGD of South Korea filed a patent infringement action against Taiwan's AUO and Chi Mei Optoelectronics (CMO). AUO filed a counter-claim against LGD thereafter. The case went to trial in June 2009. At the trial, LGD claimed over US$690 million of damages from AUO.

The four AUO patents that the court found that LGD infringed include: US Patent Nos. 6,778,160, 6,689,629, 7,125,157 and 7,090,506, which patented technologies that help to improve response time, improve reliability of LCDs, solve the problem of defects in displayed images, and provide a compact structure useful for small handheld devices, respectively.

The infringing LGD products cover a wide variety of applications, including LCD panels for TVs, monitors, notebooks, public information displays and mobile phones. A substantial share of products using LGD's LCD panels sold in the US are infringing products, AUO said.

Based on the court's finding, AUO will seek an injunction preventing LGD from exporting to and selling in the US products found to have infringed AUO's patented technologies. The court also concluded that LGD induced infringement on AUO's patents. Based on this ruling, AUO hopes that LGD's customers will immediately cease purchasing any unauthorized infringing products from LGD for sale or use in the US without the need for further court action.

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