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LG Energy Solution already won in its patent dispute against SK Innovation, but it seems it will be filing more lawsuits if the rest of the issues are not settled. The U.S. International Trade Court sided with LG based on the final ruling that was handed down this week.
Reuters reported that SK Innovation was slapped with a 10-year ban on lithium-ion battery import to the U.S. However, the ruling states that the ITC will allow SKI to import parts for domestic production of the lithium-ion batteries and other components for Volkswagen’s MEB electric vehicle for two years and parts for Ford Motor’s EV F-150 for four years.
LG’s warns SKI
In any case, following the US ITC’s ruling, LG Energy stated that it might file more lawsuits against SKI in Europe and South Korea. As per The Korea Herald, LG warned SK Innovation that it should refrain from repeating similar incidents because it will go to court again for more cases if the company does not behave.
“It’s difficult to say SK Innovation’s theft of LG Energy Solution’s technology and the damages it has inflicted are confined to the US region,” Han Woong Jae, LG Energy’s head of legal affairs, said. “LG Energy Solution believes such damages occurred in Europe, Korea and other countries. Whether LG Energy Solution will file lawsuits in other regions depends entirely on the attitude of SK Innovation."
In any case, SK Innovation admits its defeat in the infringement lawsuit. But the company may still look for other options instead of a settlement with LG Energy. A SKI official said that if they decided to settle, it will be done before the end of the grace period given to them.
LG Energy said that SKI’s loss will serve as a liability for the company when making a deal with carmakers in the future. LG is also demanding almost KRW3 trillion won in compensation, but SKI is only offering less than KRW1 trillion.
SK Innovation can still trade for a certain period
As mentioned, despite losing to LG Energy, SK Innovation can still supply parts to Volkswagen and Ford Motor Co. it was added that SKI is also allowed to repair or replace its batteries in Kia vehicles that were sold in the U.S.
Finally, SKI was given enough time to supply parts, and this will also allow them to ease backlogs that had accumulated when LG filed a suit for intellectual property rights. SK Innovation said that it regrets the outcome of the case but relieve since they can still continue supplying to Ford and VW.
