Rapid Increase in Patent Infringement Cases by Latecomer Companies
On the 10th, LG Energy Solution headquarters on Yeouidaero, Yeongdeungpo-gu, Seoul. Photo by Jinhyung Kang aymsdream@
# Global battery company A supplies electric vehicle batteries to company B, which sells electric vehicles across Europe. However, after LG Energy Solution analyzed company B's electric vehicle batteries, it was found that there are over 30 cases of patent infringement related to core materials and processes such as coated separators, cathode materials, and electrode-cell structures, infringing LG Energy Solution's patents.
# Company C supplies batteries to leading electronic device manufacturers worldwide. Laptops and mobile phones equipped with company C's batteries are actively sold in Europe, China, and other regions. However, company C's batteries have been found to unlawfully use LG Energy Solution's patents, with more than 50 confirmed patent infringements involving coated separators, cathode materials, and electrolyte additives.
On the 24th, LG Energy Solution announced its strong stance against the widespread 'patent free-riding' in the industry. The company has established a policy to respond firmly to companies illegally using its patents through lawsuits and warnings. Additionally, it plans to lead the creation of a global battery patent licensing market to foster a fair competitive environment in the battery industry.
LG Energy Solution reports that indiscriminate infringement cases by latecomers on its intellectual property (IP) continue unabated. Numerous cases have been discovered where competitors' products, already commercialized and sold in the market?from small batteries for IT devices to medium and large batteries for electric vehicles?violate LG Energy Solution's proprietary technologies.
So far, LG Energy Solution has made various efforts to protect its rights, including filing lawsuits against competitors for patent infringement and trade secret theft at the U.S. International Trade Commission (ITC) and German courts. However, unfair intellectual property infringements persist, and market distortions have worsened as major automakers do not consider patent compliance when selecting battery suppliers. Therefore, the company has decided to take stronger measures.
Han-Seon Lee, Executive Director of LG Energy Solution's Patent Center, stated, "LG Energy Solution is an Original Innovator that has pioneered the battery market through continuous technological development since the industry's early days." He added, "To maintain technological leadership and promote the industry's mutual growth, we will establish a legitimate patent transaction system and respond strictly to illegal infringement cases."
Among about 1,000 strategic patents, 580 infringements confirmed... Patent infringement by latecomers 'has gone too far'
Currently, the number of 'strategic patents' held by LG Energy Solution that competitors have infringed or are expected to infringe reaches about 1,000. Among these, 580 cases of confirmed infringement by competitors have been identified.
As the market rapidly grows and competition among battery companies intensifies, indiscriminate technology theft cases have surged. Unlike LG Energy Solution, which, as an industry pioneer, secured patents on key technologies, latecomers who find it difficult to obtain high-quality patents are expanding their market entry into Europe, China, India, and Southeast Asia through unauthorized patent use.
In fact, LG Energy Solution has secured most core technologies across a wide range of fields including battery materials, processes, and packs/BMS (Battery Management Systems). It holds patents ranging from first-generation foundational technologies already commercialized in battery manufacturing to advanced third-generation technologies, with 32,000 registered patents and about 58,000 patent applications as of current registration standards.
Representative examples include patented technologies that enhance electrode adhesion of safety-enhanced separators, enabling various electrode assemblies. Also, numerous infringement cases have occurred involving electrode design patents that incorporate core process technologies such as the Double Layer Slot Die Coating (DLD) technology?an innovative coating technology first applied to anodes worldwide by LG Energy Solution in 2018?and carbon nanotube (CNT) dispersion technologies.
Additionally, LG Energy Solution has pioneered the development of electrolytes for high-voltage and high-efficiency batteries, high-capacity high-nickel (High-Ni) NCM cathodes, and mid-nickel (Mid-Ni) NCM (NCM523, NCM622). It was the first to apply and patent surface treatment methods and electrodes mixing lithium iron phosphate (LFP), lithium cobalt oxide (LCO), lithium manganese oxide (LMO) with NCM, as well as silicon (Si)-based anodes, making the risk of technology infringement significant.
Concerns about technology infringement also extend to next-generation batteries that will lead the future battery industry. LG Energy Solution holds key patents for dry electrodes, which are eco-friendly and cost-competitive technologies that do not use organic solvents, and for the next-generation cylindrical battery 46-series. Safety diagnostics and BMS developed from accumulated data are also expected to become essential patents for the growth of the electric vehicle market, indicating that patent infringement by competitors will likely intensify further.
Leading the establishment of a licensing market in the battery sector through a global patent pool
LG Energy Solution plans to lead the establishment of a reasonable licensing market to protect its proprietary technologies and create a fair competitive environment in the market as a 'rule-setter' setting standards in the battery industry. To this end, it will utilize various monetization models such as patent pools and patent sales.
First, focusing on patents currently being infringed in the market, LG Energy Solution will gradually license key patents through a global patent pool to streamline licensing business and management. Since patent licensing markets are already actively formed in major industries such as semiconductors and telecommunications, it is judged that a global licensing market centered on leading companies is necessary for the maturation and development of the battery industry.
This will create a virtuous cycle where leading companies receive reasonable royalties for their patents and expand investments in technology development, while latecomers enhance product competitiveness through legitimate patent use.
If indiscriminate technology infringement continues without legitimate licensing agreements, LG Energy Solution plans to take strong measures such as patent infringement injunction lawsuits. To this end, it will actively secure local experts in major markets such as the U.S., Europe, and China to strengthen global litigation capabilities and expand overseas IP offices managing intellectual property rights to systematically manage and supervise global intellectual property rights.
Kim Dong-myung, CEO of LG Energy Solution, said, "Respect for intellectual property rights is an essential element for fair competition in the global market." He added, "To ensure corporate survival and industrial development, we will protect intellectual property rights and respond strictly to indiscriminate patent infringement."
He continued, "As a leading company, we will take the lead in establishing a reasonable licensing market, receive fair compensation for patent rights, and actively promote the development of future core technologies to continuously provide differentiated customer value unique to LG Energy Solution."
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