[Comprehensive] "Strict Punishment for Unauthorized Use" LG Electronics Wins Patent Dispute with China's TCL

TCL Wins 1 Case of LTE Standard Patent Infringement
2 Cases Scheduled for March and May
Technology-Intensive Smartphone and Mobile Communication Fields
Global Patent Disputes Also Increasing

[Asia Economy Reporter Cha Min-young] "LG Electronics will continue to respond strictly to unauthorized use of patents."

As global competition intensifies in the mobile communication and smartphone industries, which are concentrated with advanced technologies, LG Electronics is actively engaging in related patent lawsuits. Since winning lawsuits directly affects technology royalty income and market competitiveness, the company has decided not to tolerate unauthorized patent infringement.

Victory in Mobile Communication Patent Infringement Lawsuit Against China’s TCL

According to industry sources on the 9th, on the 2nd (local time), the Mannheim District Court in Germany ruled in favor of LG Electronics in a lawsuit filed in November 2019 against TCL, a leading Chinese home appliance company, for infringement of 'LTE standard patents.'

This is one of the three patent infringement injunction lawsuits LG Electronics filed at the Mannheim and D?sseldorf District Courts in Germany. The other two trials are scheduled for this month and May.

The lawsuit centers on the claim that some technologies applied to feature phones and smartphones sold by TCL infringed LG Electronics' LTE standard patents. Standard patents are essential technology patents that must be used to implement specific functions in related products.

The specific technologies involve methods for minimizing transmission packet loss in terminals, methods for minimizing interference during uplink synchronization between terminals and networks, and methods for effectively controlling timers to align uplink timing between terminals and networks.

Based on this ruling, LG Electronics plans to prevent TCL from selling mobile phones applying LG’s LTE communication standard patents in Germany. Cho Hwi-jae, Executive Director of LG Electronics’ Patent Center, emphasized, "Patents are the fruits of continuous technological innovation and the source of next-generation business competitiveness. We will continue to respond strictly to unauthorized use without appropriate compensation corresponding to the value of the company’s patents."

Increase in Global Patent Disputes... Importance of Patent Competitiveness Rises

LG Electronics has recently been actively filing lawsuits to prevent unfair patent use by competitors. As competition in the global mobile phone market intensifies, the potential for patent disputes such as unauthorized use has increased. Since patent outcomes significantly impact companies?from royalty income to market exclusion?these lawsuits are battles that parties cannot back down from.

LG Electronics also holds various standard patents in the mobile communication field through continuous research and development. According to the U.S. patent analysis firm TechIPM, LG Electronics ranked first worldwide for five consecutive years from 2012 to 2016 in the 4G (LTE·LTE-A) standard patent category. According to the German patent research firm IPlytics, as of the end of February, LG Electronics is the third-largest company globally with about 3,700 5G standard patents.

Based on patent superiority, LG Electronics has continuously filed related lawsuits. In March 2017, it filed a patent infringement lawsuit against the U.S. mobile phone manufacturer BLU Products, which ended with a patent license agreement. The patent lawsuit filed against the French mobile phone manufacturer Wiko in June 2018 also resulted in a first-instance victory in early 2019, but the appeal trial is currently ongoing.