Lawsuits Over Secondary Batteries Sparked by COVID-19 Impact

[Asia Economy Reporter Park So-yeon] The battery lawsuit battle between LG Chem and SK Innovation has also been affected by the novel coronavirus infection (COVID-19).

According to the industry on the 12th, the planned arrival of LG Chem's litigation representatives in the United States this month has been postponed until after the COVID-19 situation calms down. An LG Chem official explained, "It is understood that the US law firm was planning to enter the country due to witness requests related to the patent infringement lawsuit."

SK Innovation is also reportedly considering whether and when its litigation representatives will enter the United States.

Although the US International Trade Commission (ITC) issued a preliminary determination of early loss against SK Innovation in the battery lawsuit between LG Chem and SK Innovation and both companies are proceeding with follow-up procedures, the delay in the representatives' arrival has slowed progress.

Initially, SK Innovation, which faced increased risk due to the ITC's early loss decision in the electric vehicle battery trade secret lawsuit with LG Chem, set a strategy to conclude the lawsuit as early as the first quarter through a settlement.

LG Chem also expressed a position that the situation could be resolved through a settlement. This was with the intention of early termination of the lawsuit between domestic companies in the fiercely competitive electric vehicle battery market, where large corporations from Korea, China, and Japan compete, and focusing on global competition.

Separately, SK Innovation filed a petition for reconsideration with the US ITC. Typically, the ITC considers that if a party to the lawsuit does not submit a 'petition,' it forfeits all issues decided unfavorably, so SK Innovation has entered the reconsideration procedure.

This petition for reconsideration is interpreted more as proceeding with the legally prescribed objection procedure rather than continuing a fierce legal battle. An SK Innovation official explained, "It does not mean we are dissatisfied with the ruling but exercising the right to file a petition for reconsideration."

The ITC is expected to decide whether to accept SK Innovation's petition for reconsideration around mid-next month. The final decision on this lawsuit will then be made on October 5.

A battery industry official said, "There are seven months left until the final ruling, and the estimated cost incurred by the lawsuit between the two companies is about 100 billion won," adding, "In this unprecedented global situation where the COVID-19 outbreak is spreading uncontrollably, reaching a reasonable settlement is a wise choice for the battery industry and the development of Korean industry."

This content was produced with the assistance of AI translation services.