LG mulls response to patents lawsuit

By Kim Yoo-chul

LG Electronics and Pantech are looking into what action they can take against patent lawsuits filed against them Saturday by the California Institute of Technology (Caltech) in the United States for infringing on patents rights of its camera-related technologies.

``Our legal team has just begun reviewing the case. But it’s premature to talk about monetary compensation,’’ said a high-ranking LG executive, who is directly involved in the matter, in a phone interview with The Korea Times, Sunday.

``Since we need a thorough review on the case, the official reaction will not come out immediately. But we will respond soon,’’ added the executive, asking not to be identified.

The university claims LG and Pantech infringed on nine patents relating to camera technologies. Caltech filed a complaint with a federal court in Los Angeles. Alongside the South Koreans, handset giant Nokia was also a target.

The university based in Pasadena, California, was seeking monetary compensation for what it claims is ``willful infringement.’’

Pantech has also started reviewing the case and company officials were not much different from those of LG Electronics in their responses.

``We’re not considering accepting Caltech’s claim over monetary damage. Pantech will first try to see what has happened,’’ said an unnamed Pantech executive.

Caltech sued six digital-camera makers including Canon and Nikon of Japan, last year, for infringing on patents for pixel sensors.

Analysts say the allegations won’t have any imminent negative impact on the Korean manufacturers’ business in the United States ― a critical market for both.

``Patent infringement issues are very common in the consumer electronics industry. Leading consumer products companies are usually the targets by developers and most of cases finish with an agreement,’’ said one legal expert based in Seoul.

Since Koo Bon-joon, the younger brother of LG Group Chairman Koo Bon-moo, replaced Nam Yong as the new CEO of LG Electronics, the consumer electronics giant has put more resources on strengthening its smartphone portfolio and hardware capabilities.

Pantech, the smallest handset maker in Korea after Samsung Electronics and LG Electronics, is in the final stage of talks with AT&T of the United States to launch its strategic Sirius-branded smartphones, according to a company spokesman.