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Quanta studying contents of LG Electronics lawsuit
PATENT DISPUTE:
A source said Quanta believed it was not directly liable as it purchased its optical drives from third-party suppliers such as Lite-On Technology
By Jason Tan
STAFF REPORTER, WITH AGENCIES
Thursday, Jul 05, 2007, Page 11
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"The unlicensed use of our intellectual property is not acceptable under any circumstances."
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Lee Jeong-hwan, head of the intellectual property center at LG Electronics
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Quanta Computer Inc (廣達電腦), the world's top contract maker of laptops, said yesterday it was studying the details of a patent lawsuit filed by LG Electronics Inc.
The Korean company said in a statement that Quanta had infringed upon four patents related to DVD manufacturing technology.
"We are studying the contents of the litigation ... Our stance is to respect other companies' intellectual property rights," a Quanta public relations source said in a telephone interview.
Quanta had not itself infringed LG Electronics' patents as these optical disk drives were purchased from other makers, such as Lite-On Technology Corp (建興電子) and Quanta Storage Inc (廣明), she said.
LG Electronics, South Korea's second-largest electronics maker, is seeking cash compensation and an order to block Quanta from using its patented technology, the Seoul-based company said in a statement yesterday.
LG Electronics filed the complaint to a US District Court in Wisconsin on Tuesday, the company said.
LG Electronics alleges that Quanta has used its patented technology related to DVD copying and searching without permission to make notebooks supplied to US computer companies.
"The unlicensed use of our intellectual property is not acceptable under any circumstances," Lee Jeong-hwan, who heads the intellectual property center at LG Electronics, said in the statement.
LG Electronics said it holds about 5,000 international patents related to DVD technology. The company said that those, along with its patents for personal computers, "play a critical role" in its business.
Patent disputes are common in the IT industry, where manufacturers vie to defend their technological prowess amid intense competition.
Companies subject to litigation often respond with countersuits against their accusers.
LG Electronics also said yesterday that it was awaiting a final decision in another lawsuit it filed against Quanta for alleged patent infringement concerning personal computer technology in a US District Court in California.
Shares of LG Electronics rose 0.8 percent to 75,200 won (US$82) at the close in Seoul, while Taoyuan-based Quanta gained 0.4 percent to NT$51.50 in Taipei.
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