Why Did the US ITC Rule in Favor of LG?

"SK Inno, LG Chem Trade Secret Infringement"
Early Judgment in Last Year's Trial Due to Obstruction of Investigation Process

Part of the final decision document issued on the 10th by the U.S. International Trade Commission (ITC) regarding the trade secret infringement lawsuit between LG and SK. It found that there were acts of investigation obstruction, such as evidence tampering.

[Asia Economy Reporter Choi Dae-yeol] The U.S. International Trade Commission (ITC) ruling in favor of LG in the electric vehicle battery trade secret infringement lawsuit means that it accepted LG's claim that "employees were poached along with the theft of technology and trade secrets."

Previously, last year, before the trial proceedings, the ITC had issued an early loss decision against SK for evidence tampering or violating forensic orders, and this ruling was made in a similar context. At the time of the early ruling in February last year, the ITC stated, "SK Innovation's efforts to acquire LG Chem's information were carried out on an organizational and company-wide level, and they were fully aware of the potential legal issues," and found correlations in several cases where LG's trade secrets were likely used.

According to industry sources, internal emails from SK submitted as evidence during this lawsuit included LG Chem's battery raw material component specifications, material compositions, and manufacturing secrets. LG has argued that SK utilized LG Chem's cost structure, developed through long-term R&D in the battery field, to bid at lower prices in domestic and international orders. Although SK Innovation is considered a latecomer in the electric vehicle battery sector, it has increased its market share by expanding its supply base over the past two to three years. Industry reports indicate that SK rose to sixth place globally last year.

On the other hand, SK acknowledged hiring former LG Chem employees but countered that the information shared during interviews was general and not trade secrets. They also added that they have continuously refined technology in key battery material sectors such as cathode materials and separators, and that LG employees do not constitute a significant portion of their workforce. Although SK requested a full review in response to the early ruling last year, the final decision upheld LG's claims. It is rare for early rulings to be overturned in final judgments, and this case remained consistent.

LG Energy Solution stated, "This ruling clearly proves SK Innovation's act of technology theft," adding, "(This lawsuit) was a legal action that was naturally necessary to protect business and shareholder value, and it is meaningful that intellectual property accumulated through tens of trillions of won of investment over 30 years is now legally protected." They continued, "This ruling has raised awareness that trade secrets, as well as patents, are extremely important in the battery industry," and "It will serve as a deterrent against potential poaching of personnel and technology by global competitors, protecting the technological capabilities of domestic battery companies and ultimately strengthening the competitiveness of the entire battery industry in South Korea."