LG gets smacked in the face over patent lawsuit

Posted by Mike Luttrell

LG's patent infringement lawsuit against Taiwan-based AU Optronics took an unexpected turn, as the final ruling not only found no fault against AU but in fact found AU as the victim, and now LG is the guilty party.

In December of 2006, LG Dislay, the LCD-making division of LG Electronics, filed a lawsuit alleging that competing electronics firm AU Optronics (AUO) was infringing on 4 of its patents.

AUO vehemently denied the claim, and decided to file its own lawsuit in a counter-claim against LG. In that claim, AUO cited 4 of its own patents, alleging that LG was infringing on those.

The trial began in June of last year, and after a long legal battle, the tides began to shirt for LG, the company that initiated the lawsuit. In February, a US District Court judge in Delaware found LG guilty of patent infringement on all 4 patents disputed by AUO. Then, last Friday, the final death knell was sealed when the court found AUO not guilty on all of LG's charges.

The patents involved in AUO's claim against LG were largely for LCD optimization, such as technology to reduce glitches and increase response time and reliability. They applied to LCD TVs as well as displays used in computers and mobile phones.

A press release sent out by AUO mentioned no monetary reward. However, the company is seeking an injunction against LG that would prevent them from releasing any future TV sets that use the technology encompassed by the patents. That could cause a big headache for LG, especially since 2010 has already become an R&D-intensive year for new 3D technology.

AUO said in a statement that it was "elated that the Court rejected them while at the same time upholding AUO's strong patented technologies and finding infringement of them by LGD."