Samsung and Sharp slug it out in global LCD war
With CES 2008 now just around the corner, Samsung today injected more fuel into a legal battle already revving up among some of the top global players in LCDs and other TV and computer display screens.
Although poised to show highly advanced TV display technology at next month's CES 2008 in Las Vegas, Samsung also stands embroiled in legal battles on a couple of fronts in its South Korean homeland and elsewhere. One of these fights -- an LCD patent war -- took on heightened global proportions with Samsung's revelation today that it has filed a complaint with the US International Trade Commission demanding a probe of industry rival Sharp.
In its complaint, filed on December 21, Samsung is charging that Sharp and two US subsidiaries illegally imported and sold LCD products which allegedly infringe on Samsung's US patents.
Coincidentally or not, Samsung entered its complaint on the very same day that Sharp and Toshiba announced a strengthening of their earlier technology agreement. Toshiba will now use Sharp's LCD panels in its 32-inch and larger displays, whereas Sharp will now use Toshiba computer chips in its own digital TVs.
But will the large LCD panels newly incorporated into Toshiba's TVs really be based on technology from Sharp, or from Samsung? Conversely, might Samsung possibly be using some of Sharp's technology it its own wares already?
At the moment, it looks as though courts in at least three different nations will be making those decisions.
The legal move announced today by Samsung is actually a countersuit, issued in retaliation against Sharp for similar lawsuits filed by Sharp in both Texas and South Korea, alleging LCD patent violations on the part of Samsung.
In a written statement today, Samsung also said it has asked the US International Trade Commission to investigate Sharp's alleged infringements of Samsung patents, as well as to keep any Sharp LCD TVs, notebook PCs, mobile phones or other products that infringe on these patents from being sold in the United States.
On the other hand, Sharp seems to have gone one step further in its charges filed in the South Korean court, since it demanded financial damages and also asked the court to stop Samsung from manufacturing -- not just selling -- products which allegedly infringe on Sharp patents.
Sharp also said today it has asked a Tokyo District Court to prevent Sharp from manufacturing LCD TVs which are claimed by Samsung to incorporate technology stemming from two Japanese patents which Samsung supposedly owns.
On the product front, Samsung announced plans to display a 40" OLED set -- several times bigger than Sony's XEL-1 -- at CES, along with a lower-profile 31" model to compete against Sony. An emerging alternative to LCD and plasma screens, OLEDs consume less electricity and are capable of operating without a backlight.
But technological advances aside, all of this legal sparring among Southeast Asian players in the display market doesn't seem to be helping out the cause of any one of them -- in terms of industry positioning, at least. According to November figures from research firm iSuppli, US-based Vizio has now rocketed to the lead in the global LCD market, ahead of Samsung, Sharp, and Sony, in that order.
Meanwhile, back in South Korea, Samsung Electronics' parent company Samsung Group is currently the subject of a federal investigation around allegations of building up a $220 million slush fund for paying off government officials.