SK Innovation: No infringement violation in LG battery patent lawsuit, says USITC

SK Innovation scored a point when the U.S. International Trade Commission released its preliminary decision this week. The USITC sided with SK in the battery patent lawsuit filed by LG Energy Solutions when it said that no violation was committed.

As per The Korea Times, the U.S. trade watchdog ruled in favor of SK Innovation, and this ruling was announced on Wednesday, March 31. After clearing SKI in the battery infringement suit, it was reported that the company’s shares immediately surged by 15%.

Why USITC cleared SK

The trade commission said in its preliminary ruling that it could not find evidence that proves SK Innovation infringed any of LG Energy’s battery patents. The decision was handed down as the deadline to decide whether the White House could veto a separate ITC ruling based on February’s finding that stated SKI unlawfully obtained LG’s trade secrets.

"It is my initial determination in this investigation that there is no violation of section 337 of the Tariff Act of 1930, in the importation into the U.S., the sale for importation, and/or the sale within the U.S. after importation of certain lithium battery cells, battery modules, battery packs, components thereof and products containing the same, with respect to the alleged infringement of asserted claims (of the four patents)," Judge Dee Lord stated.

But then again, it should be noted that this is just a preliminary resolution. The final ruling on LGES’ patent lawsuit against SK Innovation is due on Aug. 2.

SKI’s response to USITC decision

SKI applauded the commission’s ruling and said again that the company’s battery technologies are original. It also reiterated that the products were the results of hard work.

"We have been developing advanced battery technology over an extended period of time, and therefore anticipated that the ITC would rule that no infringements were made on LGES' patents,” SK stated. “The preliminary ruling shows SKI's technological capabilities."

This ruling is a separate case from the trade secret issue between LGES and SK Innovation. ITC sided with the former in this case, and it is facing a 10-year import ban in the U.S. SKI is currently making an appeal to reverse the resolution. This ban will take effect if President Joe Biden does not overrule the decision, and he has until April 11 to decide.

Meanwhile, Reuters noted that SK Innovation and LG Energy could dissolve the USITC ruling in this trade secret suit if they can agree to a settlement. The officials in Georgia also previously called on the companies to negotiate and end the dispute to avoid further troubles as it is not just SK and LG that will be affected if the decision is not revoked.