updated 04:20 pm EDT, Mon May 3, 2010
LG may be blocked from selling LCDs
AU Optronics this weekend won a patent lawsuit against LG Display that could hamper the computer and handheld businesses. A ruling by a District of Delaware court found that LG had violated four patents relating to the performance and reliability of LCDs. Taiwan-based AUO now said it would seek a permanent ban on displays that infringe on the patents and was hoping companies would voluntarily stop buying the displays.
LG Display hasn't said whether it plans to appeal but has lost the patent lawsuit that triggered AUO's own counter-lawsuit. In 2006, LG had wanted as much as $690 million from AUO for allegedly treading on some of its own technology patents.
The lawsuit has the potential to affect not just LG's HDTV business but also cellphones, computers and notebooks, including from other companies. Apple in particular may suffer as it has a $500 million contract with LG to supply its devices with screens. The company is rumored to have a deal with an LG Display sister company, LG Innotek, for the next iPhone's 5-megapixel camera.