"SK Inno is Not Infringing LG Patents" (Comprehensive)

US ITC Preliminary Decision... Low Chance of Reversal
Interest in Impact on Veto Power and Bilateral Negotiations
SK Considering Plan B for Withdrawal from US Battery Plant

[Asia Economy Reporters Choi Dae-yeol, Hwang Yoon-joo] In the battery patent infringement case filed by LG Energy Solution against SK Innovation, the U.S. International Trade Commission (ITC) ruled in a preliminary decision in favor of SK Innovation. Previously, the ITC had accepted LG's claims regarding trade secret infringement, but this time the outcome was different. With SK considering the option of withdrawing its battery business in the U.S., attention is focused on how the remaining approximately ten days of the presidential veto review, negotiations between the two companies, and lawsuits in other regions will be affected.

On the 31st of last month (local time), the ITC issued a preliminary decision stating that SK did not infringe LG's patents related to battery separators and other technologies. While the ITC recognized the validity of some patents, it judged that most were difficult to consider infringed or that LG's claims could not be accepted. The ITC made this preliminary decision ahead of the final ruling scheduled for August 2, and it is rare for the outcome to change after a preliminary decision.

In September 2019, LG filed a lawsuit with the ITC claiming that SK infringed four U.S. patents, including three related to battery separators and one related to cathode materials. These patents concern key components of electric vehicle batteries such as separator coatings and cathode materials. The ITC judged that three out of the four patents were invalid. This lawsuit was filed by LG in September 2019 amid escalating conflicts over trade secret infringement and employee poaching.

SK: "Battery Independent Technology Recognized"
LG: "Trade Secret Infringement Separate from Patents"
Focus on Impact on Negotiations, Veto, and Additional Lawsuits

For SK, which was on the defensive after losing the trade secret infringement lawsuit in February, being recognized as not infringing patents provides some relief. SK has argued that the ITC reached conclusions on trade secret infringement without thoroughly examining the facts. SK Innovation stated, "We have long developed our own battery technology and have been recognized for our independent technological capabilities," welcoming the recent decision.

They added, "In the 2011 domestic patent infringement lawsuit filed by LG against SK, SK was also ruled non-infringing and the patents invalid. Filing another lawsuit in the U.S. is an excessive legal tactic aimed at hampering a competitor."

LG, on the other hand, draws a clear line between the trade secret infringement case it won earlier and the current patent infringement case. LG Energy Solution said, "We plan to carefully analyze the preliminary decision and seek recognition of patent infringement or validity through legal procedures. This lawsuit concerns infringement or validity of publicly disclosed patents, which is entirely separate from trade secret infringement that involves independent and differentiated economic value protected as confidential information."

President Joe Biden of the United States

Attention is focused on how the ITC's decision will affect negotiations between the two companies and the U.S. president's veto power. Negotiations between the two companies around the time of the final ruling in February have stalled due to significant differences over settlement amounts. The ITC decision could become irrelevant if the two companies reach an agreement. Internally at SK, there is open talk that it might be better to withdraw from the U.S. market than to accept LG's demand for a settlement amount in the trillions of won.

LG has officially stated that it may file lawsuits in regions outside the U.S., such as Europe and China. Although the recent decision leaned toward no patent infringement, LG still keeps open the possibility of lawsuits related to trade secret infringement, which it has been recognized for.

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