[Invest&Law] Kolon-HS Hyosung 'Tire Cord Patent Infringement Lawsuit' Third Round

Kolon Files Patent Infringement Lawsuit Against HS Hyosung
US Court Dismisses Case Twice Citing "No Patent Infringement"
Complaint Resubmitted with Amendments... Prolonged Legal Battle Expected

HS Hyosung Appeals 'Kolon HTC-Related Patent Invalidity Lawsuit' in Korea Separate from US Case

Kolon Industries has supplemented the complaint that was dismissed twice, leading to a prolonged patent lawsuit with HS Hyosung Advanced Materials. The core issue of this lawsuit is whether there has been an infringement of the Hybrid Tire Cord (HTC) patent, with Kolon Industries claiming that HS Hyosung Advanced Materials infringed on its patented technology.

According to industry sources, Kolon Industries reinforced and resubmitted the original complaint on the 11th (local time) to the U.S. Central District Court of California. This is a newly supplemented complaint following two dismissals in July and September. On the 27th of last month, the court dismissed Kolon Industries' patent infringement claims in the U.S. patent lawsuit against HS Hyosung Advanced Materials regarding the Hybrid Tire Cord (HTC).

Kolon Industries stated, "The dismissal decision means that we need to reorganize and resubmit parts of the complaint, and it does not mean the trial itself has ended," adding, "We plan to supplement the court's requested content and submit the complaint to the court within 14 days."

This case began in February when Kolon Industries filed a lawsuit in a U.S. court, alleging that HS Hyosung Advanced Materials copied its HTC manufacturing process and infringed its patent. HTC is an advanced tire cord made of aramid and nylon, noted for its excellent durability and strong load-bearing capacity, making it a tire material suitable for heavy electric vehicles. HS Hyosung Advanced Materials and Kolon Industries hold the first and second positions in the global tire cord market with market shares of 51% and 15%, respectively. Kolon Industries claims that it was the first in Korea to develop HTC using aramid and has been mass-producing and selling aramid and nylon HTC since 2015. It asserts that HS Hyosung Advanced Materials has been continuously supplying HTC made by unauthorized use of Kolon Industries' HTC-related patented technology to Hankook Tire, violating U.S. patent law.

However, the court ruled in favor of HS Hyosung Advanced Materials. Judge James Selna dismissed the case, stating, "We cannot accept any of Kolon Industries' patent infringement claims against HS Hyosung Advanced Materials." The court pointed out that Kolon Industries' claims are based on third-party sales activities by tire manufacturers, not HS Hyosung Advanced Materials itself. Regarding the claim that HS Hyosung Advanced Materials directly imports HTC products into the U.S., the court found that specific products or infringement facts were not clearly proven.

Separately from the lawsuit in the U.S., HS Hyosung Advanced Materials is conducting a patent invalidation lawsuit against Kolon Industries in Korea related to HTC. In 2022, HS Hyosung filed an invalidation suit with the Korean Intellectual Property Trial and Appeal Board, arguing that Kolon's HTC patent lacks novelty. The board partially dismissed and rejected the suit in March. HS Hyosung is currently appealing this decision.