Sales Ban and Damages Lawsuit Filed Against Cuckoo Homesys in March
Similar Lawsuit Filed Against Kyowon Wells in September
Design Rights Infringement Lawsuit Filed Against Products with Registered Design Rights
Industry Sees Lawsuits as Strongly Aimed at Checking Latecomers
Coway, the leader in the ice water purifier market, has recently initiated a series of patent lawsuits against competing companies, creating tension in the industry ahead of the peak season. While there is ongoing debate within the industry about whether the issues in question constitute patent infringement, some voices are raising concerns that Coway's 'assertive actions' could lead to an overall contraction of the market.
According to industry sources on the 17th, companies sued by Coway uniformly expressed that the likelihood of legal issues arising is very low. An industry insider stated, "Coway's string of lawsuits is seen more as a symbolic move to reaffirm its position within the industry and to check competitors, rather than expecting legal gains."
In August last year and March this year, Coway filed lawsuits against Kyowon Wells' 'Ice One Ice Water Purifier' and Cuckoo Homesys' 'Zero 100 Slim Ice Water Purifier' respectively, seeking sales bans and damages for design rights infringement. Notably, both products had completed design rights registration with the Korean Intellectual Property Office. Design rights, granted under the Design Protection Act, allow exclusive use of a design after thorough examination of novelty, creativity, and industrial applicability by the patent office.
Patent attorney Sohyun Park of Sarang Patent Law Firm said, "While theoretically possible, it is uncommon to file a design rights infringement lawsuit against products that have completed design registration through examination by an administrative agency like the patent office. To be recognized as design rights infringement, the design must be so similar in detailed aspects that consumers could be misled, not just superficially alike, making the examination criteria stringent."
The timing of Coway’s active litigation also supports the interpretation of these as 'check-and-balance lawsuits.' Coway sent warning letters to Cuckoo Homesys and Cheongho Nice and launched a full-scale industry confrontation in August last year, coinciding with LG Electronics’ first entry into the ice water purifier market. This has led to interpretations that Coway aims to solidify its position in the ice water purifier market while checking the market entry of large corporations like LG Electronics.
However, there are concerns that if the litigation intensifies, it could become difficult for small and medium-sized enterprises to enter the market, potentially stifling the market’s vitality in the long term. According to the industry, the domestic ice water purifier market is worth about 600 billion KRW, with Coway holding roughly half of the market share. Due to heatwaves and abnormal weather patterns, the ice water purifier market is regarded as a 'blue ocean' within the saturated water purifier market.
Professor Yonggu Seo of the Department of Business Administration at Sookmyung Women’s University said, "There are various reasons for the lawsuits, but if one company uses its dominant market position to restrict the market entry and competition of various competitive companies, it will lead to a long-term contraction of the market. Diverse companies that have developed in terms of function and design should challenge the dominance of the number one company."
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