December 1 Launch of LG Energy Solution... Manuscript Revision Registered
Worsening COVID-19 in the US Has Greater Impact
"Increased Uncertainty Makes Predictions Difficult"
[Asia Economy Reporter Hwang Yoon-joo] The U.S. International Trade Commission (ITC) is increasingly likely to delay the final ruling in the trade secret infringement lawsuit between LG Chem and SK Innovation over electric vehicle batteries once again.
This is due to the need for the plaintiff side to make amendments following the change of the lawsuit's plaintiff from LG Chem to LG Energy Solution, as well as the worsening COVID-19 situation in the United States. While there are expectations that the prolonged lawsuit may lead both companies to reach a settlement, some predict that the uncertainty surrounding the lawsuit's outcome will increase, making it difficult to foresee what lies ahead.
According to industry sources on the 23rd, LG Chem plans to register LG Energy Solution as an additional plaintiff with the ITC next month. LG Energy Solution is a newly established company as of December 1, following the physical division of LG Chem's battery business division. Accordingly, the ITC lawsuit against SK Innovation must also be amended to reflect LG Energy Solution as the plaintiff.
The legal battle between the two parties began in April last year when LG Chem filed a trade secret infringement lawsuit against SK Innovation with the ITC and the U.S. District Court for the District of Delaware. In February this year, the ITC issued a preliminary ruling against SK Innovation, and in April, SK Innovation filed a petition for reconsideration, which the ITC is currently reviewing. The final ruling was initially scheduled for October 5 but was postponed to October 26 due to COVID-19, and then further delayed to December 10.
Some believe that the surge in COVID-19 cases in the U.S. will have a greater impact than the addition of a plaintiff. As of the 22nd (local time), the number of confirmed cases in November in the U.S. was approximately 3,002,000, accounting for one-quarter of the total confirmed cases in the U.S. (12 million). Similarly, the ITC lawsuit between Medytox and Daewoong Pharmaceutical, which was scheduled for a final ruling on November 6, was postponed to November 19 and then further delayed to December 16.
The U.S. presidential election is also a variable. Once the ITC final ruling is issued, the U.S. president must review it and exercise approval or veto power within 60 days. The U.S. presidential election's electoral college will cast their final votes on December 14 based on the election results from each state to determine the winner. To do this, all states must certify their election results within the deadline. Currently, U.S. President Donald Trump has filed lawsuits requesting delays in certifying the vote counts in battleground states. Once the election results in Michigan and Pennsylvania are certified on the 23rd (local time), the electoral votes secured by President-elect Joe Biden will be officially recognized.
However, if President Trump refuses to accept this and continues with lawsuits, the confirmation of the election winner may be delayed. This suggests that the ITC's final ruling could be postponed again due to political considerations.
Currently, LG Chem and SK Innovation are discussing a settlement related to the ITC lawsuit, but no progress has been reported. LG Chem maintains that a settlement can only be reached if the three preconditions it previously stated are met, while SK Innovation continues to reject these conditions, resulting in a stalemate between the two sides.
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