SK Innovation wins patent lawsuit

By Kim Yoo-chul

The landscape of the nation’s car battery market is expected to change as SK Innovation has won a patent suit against LG Chem, the world’s biggest player in the sector.

The key affiliate of SK Group was successful in its legal battle against LG Chem, citing a decision by the Korea Intellectual Property Tribunal (KIPO) to nullify LG’s lithium-ion battery separator patent after filing a patent invalidity case late last year.

It is as yet uncertain whether LG Chem will pay royalties to its cross-town rival while confirming it will appeal the ruling.

``As an appeals court normally approves the ruling by the KIPO chances are good for SK Innovation to be declared the victor in the patent dispute. But this case also appears different because it’s highly sensitive,’’ said a patent expert in Seoul by telephone, Monday.

In December, LG Chem filed a lawsuit with the Seoul Central District Court insisting that SK stole its patents. SK countersued, according to officials from the companies.

SK looks confident to defeat LG Chem after winning against Japan-based company Tonen in a similar case, according to SK officials.

A lithium-ion battery separator is considered a key part in the production process. As leading Korean chemical and technology companies are investing more in batteries amid government initiatives for eco-friendly electric vehicles, they are increasingly involved in patent disputes.

``This is a matter of pride,’’ said the expert familiar with the situation. In a statement, LG Chem said it’s ready to bring the issue to the highest court and added the final decision will come within the next two years.

SK Innovation hopes to challenge LG Chem’s current lead in the global market for large-sized lithium-ion batteries although it was late arriving in the lucrative and growing market.

LG Chem supplies car batteries to top 10 global car makers including General Motors and Renault. It has already opened a battery manufacturing plant in the United States and plans to build another facility in Europe.

SK Innovation is seeking to steal some of LG Chem’s share by forming international alliances. For SK, it is looking to batteries to offset falling profits from its petrochemical business amid heated competition in China and fluctuating oil prices.

SK has agreed with German-based car parts supplier Continental to invest several hundred million euros in a joint venture with an aim to develop lithium-ion battery technology for electric vehicles.