LG Electronics fighting knockoff products

By Kim Yoo-chul

LG Electronics, the world’s second-biggest television maker, has announced a war on fake goods as its brand image has been tarnished in some of its key markets.

LG has sued an Iraq-based KAWA in a regional court to halt the sale of what LG officials say are counterfeit products produced by the Iraqi company because KAWA didn’t pay for royalties to use the LG brand.

``We are seeking 16 billion won in compensation,’’ said senior LG spokesman Yoon Won-il, Wednesday, adding his firm is ideally positioned due to its enhanced traceability and it will drive up anti-counterfeit efforts.

LG said KAWA has been selling goods that use ``Super LG’’ without any prior agreement. Yoon said LG is planning a complete ban on the product exports as part of its initiatives to secure its intellectual property (IP) rights.

``Trademark infringement-related troubles are increasingly common in emerging markets because LG’s brand awareness has improved. And we need to root out such illegal activities,’’ said Yoon.

China is the source of some 70 percent of the fake goods, with substantial quantities from Hong Kong, India and even South Korea.

Counterfeiting, which is extremely prevalent, is a serious problem as improperly made electronics such as televisions and handsets can put consumers’ health and safety at risk. Such items are often sold over the Internet.

In accordance with the initiatives, LG took local Chinese company DISCOVY to a court over infringements of LG patents as the firm had been selling fake LG handsets.

``It’s so silly that a company that manufactures counterfeit goods is creating sizable revenue. DISCOVY’s annual income was estimated at $1 million and it has distribution channels in North America, Europe, Asia and Africa,’’ according to Yoon.

LG has hired more patent experts to better handle its IP-related policies since LG Electronics has returned to family ownership in the wake of deepening struggles in its smartphone business.

``The Iraqi case is just one part of our strengthened IP policy. The one clear thing is that we will do more if we need to,’’ said Yoon.