SK Innovation, LG Energy: Out-of-court battery patent settlement collapsed as US ITC’s final ruling nears

SK Innovation and LG Energy Solution are involved in a battery patent dispute since last year. The South Korean companies are battling it out in court to resolve intellectual property conflict but recently considered out-of-court settlement after Prime Minister Chung Se Kyun interferes.

The South Korean PM asked SKI and LG to resolve their dispute quickly because it is only an “embarrassing” situation since they are both from the same country. The prime minister added that the dispute is just benefitting their Chinese competitors as well because they are grabbing the opportunities as both LG and SKI are unable to do business since the case is not yet resolved.

"I told them to resolve the issue sometime soon,” PM Chung stated. I've heard the two companies paid a few billion won in fees to attorneys and this is simply embarrassing."

The attempted settlement failed

The case between SK Innovation and LG is set to get the final ruling from the US International Trade Commission on Feb. 10. Ahead of the announcement, it was reported that the companies’ tried but failed to reach an amicable settlement; thus, the decision from USITC remained the only way to end the dispute.

"SKI and LGES have failed to reach a settlement before the USITC's final ruling,” The Korea Times quoted an official as saying. “The two sides were still at odds as LGES asked SKI to admit it infringed on intellectual property for battery-making technology, while SK reiterated that it didn't infringe on any patent rights."

The official further said that LG and SKI were not able to fix their differences. The talks to determine how much settlement money should be given out also went down the drain. Despite the failed agreement, it was mentioned that they are still trying to find a middle ground prior to the US ruling. It should be noted that the initial decision by the commission favored LG.

Biden may “veto” the SKI - LG verdict?

With the International Trade Commission’s schedule to hand the verdict tomorrow for the LG and SKI battery infringement case, some industry analysts stated that even if LG wins, it is possible that President Joe Biden may veto the decision.

"If the ITC sides with LG Chem, Biden could overturn that decision,” The Washington Post quoted Daniel Spiegel, vice chairman at Covington & Burling law firm, which is representing SKI. This will be big news, and everyone has to wait for the verdict that will finally be revealed just hours away.