LG Electronics wins PC patent suit

This development strengthens LG's role in patent-royalty talks.

LG Electronics brought patent suits against Taiwan-based PC manufacturers Quanta, Compal, and FIC in the Northern District of California in May 2000. In several rulings ending in December 2004, the district court ruled against LG's charges of infringement.

However, the appeals court comprehensively reversed the rulings of the district court on July 7. Supported by the appellate ruling, LG now has a strong base to pursue its claims of infringement in the district court.

K.W. Kim, President, LG Electronics Middle East and Africa operations said: "LG's patent value was supported by the ruling. As a result, LG will carry on active royalty negotiation with computer manufacturers. LG completed its royalty talks and entered into patent licensing agreement with over 10 PC manufacturers, and plans to resume the negotiation at least with 30 companies."

The tussle between LG and the defendants dates back to 2000, when LG filed suits against the Taiwanese companies. LG's claims include infringement of its PCI patents, which involve core technology in personal computers. The Taiwanese companies have supplied notebook PCs and desktop PCs to famous US PC companies.

PCI (Peripheral Component Interconnection) is a bus standard facilitating data transmission between microprocessor(s) and PC peripheral devices. The PCI bus is used by computer manufacturers throughout the world.

LG has over 2,000 patents in the field of computer technology. In 2000, Intel obtained a license to use all the PC patents of LG through a Patent License Agreement with LG.