[Patent Talk] LG and SK's Battery Dispute Remains Deadlocked... Is a Settlement Possible?

This column by patent attorney Taeyoung Lee of our firm was published in Etoday on March 30, 2021. It discusses the battery dispute between LG Energy Solution and SK Innovation.

[Patent Talk] LG and SK's Battery Dispute Remains Deadlocked... Is a Settlement Possible?

A month has passed since the ITC decision, but the battery dispute between LG and SK remains deadlocked. At its annual general meeting of shareholders on the 26th, SK stated that it cannot accept demands from its competitor that would make continuing its US battery business meaningless or significantly undermine its competitiveness. LG immediately responded the same day that it was very regrettable that SK refused to accept the ITC's decision and was misrepresenting the facts.

SK is now staking everything on a veto by President Biden, whose deadline for exercising it is April 11. On the 10th, LG Energy Solution CEO Jong-hyun Kim sent a letter to Georgia Senator Raphael Warnock, expressing willingness to build a battery plant directly or to acquire the plant currently under construction. Meanwhile, Georgia Governor Brian Kemp sent a second letter to President Biden on the 12th asking him to exercise the veto, and SK hired former US Deputy Attorney General Sally Yates as legal counsel.

Neither side is giving an inch. Yet continuing the dispute appears to be a burden for both LG and SK. Although LG is in a favorable position in the litigation, the US political community's wish for a settlement is a heavy burden. LG also faces headwinds: battery fires have led to recalls not only of batteries supplied to GM but also of those supplied to Volkswagen, and Volkswagen has announced plans to switch to prismatic batteries with the Chinese market in mind.

SK's position is even more awkward. In the past ten years, a presidential veto of an ITC decision has occurred only once, and the prevailing view is that the Biden administration, which is stepping up pressure on China over IP infringement, will not take the risky step of a veto.

SK's biggest burden is the default ruling against it in the ITC trade secret case due to the deletion of documents. In US litigation...

(Please click the link below to read the full column.)

LNB IP Law Firm