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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] LG Chem has escalated its patent dispute over key organic light-emitting diode (OLED) materials with Japan’s SFC, seeking approximately KRW 30 billion (USD ~22 million) in damages along with a comprehensive ban on production, sales, and imports of the disputed products.
According to industry sources on February 16, LG Chem recently filed an amended complaint in its ongoing civil lawsuit against SFC, a subsidiary of Hodogaya Chemical, citing patent infringement related to blue host materials used in OLED displays.
The revised filing, which clarifies LG Chem’s claims for the first time since initiating the lawsuit in 2024, seeks not only monetary damages but also injunctions covering production, sales, and imports, as well as the disposal of existing inventory. Industry estimates place the damages claim at around KRW 30 billion, based on SFC’s product sales.
SFC develops and manufactures organic materials for OLED applications, including blue host and dopant materials, which are critical to determining the efficiency and lifespan of OLED panels used in smartphones and televisions. The company also operates production facilities in Korea.
SFC has challenged the validity of LG Chem’s patents through invalidation proceedings; however, both the Korean Intellectual Property Trial and Appeal Board (2022) and the Patent Court (2024) rejected the claims, reaffirming the validity of LG Chem’s patents. The case is currently under review by the Supreme Court.
Having secured favorable rulings in the patent validity dispute, LG Chem is now intensifying its legal response in the civil litigation. Industry observers say the move goes beyond a typical patent dispute and effectively targets the suspension of SFC’s core business.
The litigation is also expected to increase management uncertainty for SFC, particularly as the company is pursuing an initial public offering (IPO).
Given that blue host materials are closely tied to supply chains for major panel makers, a favorable ruling for LG Chem could restrict SFC’s ability to supply OLED materials, potentially impacting the broader display industry, including companies such as Samsung Display and Chinese panel manufacturers.
The next hearing is scheduled for March 28, with a ruling expected between late July and early August.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
