US ITC: "No Issues with SK Patent Lawsuit" (Comprehensive)

LG Energy Solution's Request for Sanctions Rejected

[Asia Economy Reporters Choi Dae-yeol, Hwang Yoon-joo] SK Innovation's request to cancel (sanction) the patent lawsuit it filed against LG Energy Solution (then LG Chem) at the U.S. International Trade Commission (ITC) in 2019 has been dismissed. Accordingly, SK's patent lawsuit against LG will also undergo ITC investigation.

According to the decision released by the ITC on the 1st (local time), the ITC administrative law judge dismissed LG's "sanction request" filed last year. Previously, in September 2019, SK filed a lawsuit claiming that LG's batteries exported to the U.S. infringed its patents. In response, LG filed a counter-patent infringement lawsuit in the same month and about a year later, in August of the following year, requested the ITC to impose sanctions on SK's lawsuit, alleging "evidence destruction."

The ITC dismissed this, stating that "LG's unilateral claim is baseless and the documents were well preserved." It also pointed out that this was unrelated to the current matter (patent lawsuit). The ITC said it would closely examine whether LG's batteries infringe SK's patents.

ITC Dismisses LG's Sanction Request
SK: "Document Deletion Claim Is Unreasonable... We Will Prove Our Technological Superiority"
LG: "This Is Not a Matter of Advantage or Disadvantage... Will Prove in Remaining Procedures"

SK stated, "After being sued for patent infringement, LG maliciously adopted a strategy of framing 'document deletion,' but this ruling has revealed that such claims are baseless and unreasonable," adding, "We will properly engage in the lawsuit and prove the superior technology and distinctiveness of SK batteries in the main case."

On the other hand, LG viewed the dismissal as a common occurrence during litigation that does not affect the essence of "patent infringement." LG Energy Solution said, "The ITC concluded that most of SK's evidence destruction acts occurred before the preservation obligation arose (July 2019), making sanctions unnecessary," emphasizing, "Based on evidence secured through forensics, we will actively argue in the remaining litigation procedures that SK's patent infringement claims are unfounded."

Furthermore, considering that the ITC's Office of Unfair Import Investigations submitted a brief supporting LG's sanction request last year and SK's motion for summary determination was dismissed, LG believes it is difficult to assess which side currently holds an advantage.

The two companies have been in conflict since around 2017 over issues such as poaching personnel, before filing trade secret infringement lawsuits with the ITC. Subsequently, LG filed a trade secret infringement lawsuit in April 2019, and in September of the same year, the two engaged in a counter-patent infringement lawsuit, resulting in over two years of legal battles. The ITC upheld LG's favor in the preliminary decision on trade secret infringement in February last year and maintained it in the final decision this year. Conversely, SK was favored in the patent infringement case. Recently, a preliminary decision document was released, judging that most of LG's patent infringement claims were unfounded.

The ITC will issue a preliminary decision on this patent lawsuit by the end of July. With LG's request dismissed, the ITC will examine the patent infringement issue, and depending on the investigation results, there is a possibility of import bans on LG batteries in the U.S. SK has requested injunctions, remedies, and damages in its patent lawsuit. Following the final ruling on trade secret infringement favoring LG, unless there is a presidential veto or an agreement between the two companies, SK batteries could face a 10-year import ban starting next month.

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