LG Chem Steps Up OLED Material Patent Defense, Seeks Ban on Competitor's Production and Sales

Lawsuit Intensifies with 30 Billion Won Damage Claim Targeting SFC

Concerns Grow Over Potential Disruption to SFC's Business and Ripple Effects Across the Industry

LG Chem has filed claims for damages and a complete ban on the production and sales of products in its patent dispute with a competitor over core organic light-emitting diode (OLED) material technology. By significantly raising the intensity of its legal action, LG Chem is seen as making a strong move to protect its original OLED technology.

LG Chem logo. LG Chem

According to industry sources on April 16, LG Chem recently submitted an amendment to its statement of claim in the ongoing civil lawsuit against mid-sized materials company SFC, citing infringement of its OLED blue host material patent.

With this amendment, LG Chem has specified its demands, seeking damages in the hundreds of millions of won, as well as a ban on the production, sale, and import of the disputed products, and even the disposal of inventory. The industry estimates the damages at around 30 billion won, considering the scale of SFC’s product sales.

By moving beyond simply seeking compensation and instead demanding strict measures to restrict the competitor’s production and sales activities, the lawsuit is expected to have far-reaching effects across the industry depending on the outcome.

SFC is a company that develops and produces organic materials for OLEDs, with blue hosts and dopants among its main products. These materials are key elements that determine the luminous efficiency and lifespan of OLED panels used in smartphones and TVs.

In 2019, SFC filed for a trial arguing that LG Chem’s blue OLED host material patent was invalid. However, the Intellectual Property Trial and Appeal Board dismissed the claim in 2022, and in 2024, the Patent Court reached the same decision. The case is currently pending before the Supreme Court.

With a favorable position in the patent dispute and now significantly raising the level of its response in the civil lawsuit, LG Chem is seen as targeting even the suspension of SFC’s core business.

Depending on the outcome of the lawsuit, it is expected that SFC will face increased management uncertainty due to legal risks, and that this could also negatively impact its ongoing initial public offering (IPO) plans.

In particular, since blue host materials are directly tied to the supply chains of major panel manufacturers, if LG Chem’s claims are upheld, SFC’s ability to supply OLED materials could be restricted, potentially causing ripple effects throughout the industry.

The fifth hearing in this case is scheduled for May 28 next month, with a ruling expected between late July and early August.

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