UDC admits patent setback

By Kim Yoo-chul

Universal Display Corp. (UDC), the U.S.-based developer of organic light-emitting diode (OLED) technology for the use in flat-panel displays and organic electronics, said Monday that it will appeal Japanese rulings that invalidated key OLED patents.

UDC's chief executive Steven Abramson admitted in a tech investor conference that a court in Japan invalidated the patents, but added the appeal was in the works and the litigation won’t harm its business portfolio.

About patent challenges in Europe, the CEO said; "there is a challenge about one patent but there isn't a decision yet."

UDC is also being challenged on two other patents by a local materials manufacturer of Duksan Hi-Metal.

Korea's Samsung Mobile Display (SMD) and LG Display, as well as several local materials makers are expected to benefit from the news from Japan because the void helps them export and develop OLED materials without paying royalties.

SMD has been known to pay ``millions of dollars’’ to UDC in return for using UDC’s a so-called ``PHOLED’’ materials for OLED screens used in smartphones, camcorders, cameras and other premium electronic devices.