Teco Electric & Machinery Co (
Teco's Japanese unit, Sankyo Co, yesterday filed a lawsuit against Sharp in Tokyo District Court, requesting ¥200 million (US$1.85 million) in damages and that a letter of apology be published in major newspapers to compensate for the Japanese company's "improper actions," Teco said.
Teco's latest move follows on charges filed by Sharp in mid-February that alleged the company had infringed on its liquid-crystal-display (LCD) patents.
The charges were seen by many as an attempt to fend off competition from Teco's lower-priced slim-screen TVs in the world's second-largest LCD TV market.
Similar charges filed previously by the Japanese company were thrown out.
"Teco has a high regard for patent holders and intellectual property rights. But we don't want to fall victim to patent feuds among LCD panel makers [amid heated competition]," said George Lien (
Sharp, the world's biggest LCD vendor, has misled Japanese electronics distributors and consumers, leading them to view Teco as a company that manufactures poor-quality products on infringed patents, Teco said in a statement released yesterday.
Sharp had maliciously concealed from the public a court ruling on lawsuits filed last June requesting a ban on imports of Teco's 20-inch TV sets that use flat panels made by AU Optronics Corp (
Additionally, Sharp asked for a ban on imports of Teco's LCD TVs into the Japanese market, but customs officials have not yet made a decision on the matter, according to Teco's statement.
Last year, Japan was the world's second-largest LCD market, after Europe, consuming one-third of the 8.8 million slim-screen TVs produced globally, according to a report by researcher DisplaySearch.
Teco shares have slid 12 percent since the beginning of the year, and closed at NT$9.28 yesterday on the Taiwan Stock Exchange.
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