SEOUL (Reuters) – A dispute between two of the South Korean battery makers are escalated on Friday, as SK Innovation Co Ltd (096770.SO saying that it’s going to have to continue to larger rival LG Chem Ltd. (051910.KS) in the United States of america regarding the alleged infringement of a patent relating to electric vehicles (EV).
FILE PHOTO: the logo of The FIRST “Innovation” is seen in front of its headquarters in Seoul, South Korea, on February 3, 2017. REUTERS/Kim Hong-Ji/Photo File
The proposed trial due to SK Innovation, and drew a quick denunciation from LG Chem, which has called the action “baseless” and said it would have to be compensated.
The two companies have been at loggerheads ever since, LG Chem accused SK, in the United States of america, in April, alleging theft of trade secrets by hiring a former LG Chem employees. SK Innovation is rejected, violations, and litigation is ongoing.
The firing of the last round of SK Innovation, said: ‘it was the preparation of a litigation against LG Chem, LG Chem Michigan, Inc. by the U.S. International Trade Commission, alleging patent infringement.
SK Innovation declined for additional details, including details of the time and that the matter would be filed, but said that the move was imminent. The company said that a substantial amount of the new LG Chem battery design is likely to be made, and a victory for prohibition of LG Chem from the sale of those products.
“These lawsuits are not relevant for the LG-Chem’s lawsuit against the us allegations of the misuse of a trade secret, but they have a legitimate legal proceedings to protect our intellectual property,” said y S Yoon, president of SK Innovation-battery business, the lack of recognition of the suggestion of a tit-for-tat move.
In response, LG Chem said it planned the lawsuit was “without merit”, is “very unfortunate” and “unnecessary”.
“As a competitor acknowledges his fault and promises to prevent the recurrence with a sincere apology, so we will have to agree to a dialogue if they are willing to have a serious talk about compensation,” LG Chem said in a statement.
SK Innovation stock was up 6.4% at 0510 GMT. LG Chem gained by 1.5%, trailing the market .KS11, with a 1.8% increase.
THE ACTION TAKEN BY THE GOVERNMENT.
The South Korean government is nurturing the domestic EV battery industry, the industry is so large, it is an export item of the country, such as memory chips and displays.
A source with direct knowledge of the matter said it related to the trials down the local battery makers in an era of heightened global competition. That will ensure that meant that the government could act as a mediator in order to have a quick fix, the source said, requesting anonymity due to the sensitive nature of the subject matter.
SK Innovation said it plans to create a separate US lawsuit against LG Electronics Inc. (066570.ME), another subsidiary of the LG Group, which is a claim for unauthorized patent use of EV battery production.
LG Chem makes the cells in the battery pack located in the U.S. state of Michigan, which is LG Electronics that makes use of waste batteries in the area.
SK Innovation, South Korea’s largest oil refiner, is a latecomer to the EV battery market is led by LG Chem and Samsung SDI Co Ltd (006400.ME) as well as the japanese), Panasonic Corp (6752.(T). It began with the large-scale production in 2012, with its customers, including Daimler AG, DAIGn.DE and Volkswagen AG VOWG_p.DE).
Reporting Heekyong and Yang, and Ju-min Park; Editing by Christopher Cushing and Jane Wardell