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LG draws first blood in 3D TV ad battle

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Legal dispute with Samsung highlights tech sensitivity in stereoscopic flat-screens

By Kim Yoo-chul

The feud between two of the world’s biggest TV makers over 3D televisions is continuing.

This time, however, the competition isn’t about technology. It is related with advertising as the Korean firms are spending heavily on big promotional campaigns in key markets.

Samsung is pushing its battery-powered 3D technology. Latecomer LG is hoping to break Samsung’s current lead with its own cheaper film-patterned retarder (FPR) technology.

The rather ``emotional fight’’ has been reaching a climax after an Australian court dismissed Samsung’s argument that its battery-powered system is much better than the LG’s FPR technology.

Samsung initiated its court action against LG over ads for LG’s 3D television sets that have been on air since May, which claimed that its models were brighter than Samsungs’.

Samsung regarded the advertisements as deceptive and misleading. Samsung’s intention was apparent _ it wanted a complete ban on four LG TV commercials.

A preliminary ruling from the Federal Court in Sydney said that LG’s advertisements didn’t claim that they are superior to Samsung’s 3D TV range.

``Evidence has shown that LG’s 3D glasses are significantly lighter than Samsung’s. Even Samsung’s 2011 premium, redesigned glasses are twice the weight of LGs,’’ according to the ruling.

``There was nothing misleading or deceptive about that.’’

3D glasses are required to experience 3D images. LG is using lighter films, while Samsung is using glasses, which are a bit pricey.

Though the lack of customized content is preventing steady and powerful growth of 3D televisions, many analysts and officials predict explosive growth in the emerging and booming 3D TV market over the next few years.

Samsung and LG both see this sector as a key market and crucial battlefield that they should not lose.

Previously, in Korea, Samsung attacked LG engineers by saying that claims over the merits of LG’s FPR 3D technology were nonsense.

In response, Kwon Young-soo, a top LG executive, announced that the company’s technology was admired by global technology majors and insisted that Sony, Samsung’s top TV ally, might adopt LG’s system on its upcoming models.

A Samsung representative said his company was expecting a final ruling in September this year, which will determine whether to ban LG’s advertisements or not.

An LG Electronics spokesman said it will expand its footprint in the Australian 3D market and the ruling will help it gain more business momentum.

Samsung said it doesn’t have any imminent plans to expand a court battle with LG outside Australia for the time being. ``We will prepare our next plan after the final ruling in Australia,’’ a Samsung representative said.

Fundamentally, the argument has to do with which of the two technologies is best at improving the viewing experience of the 3D TV sets.

LG is consistently saying that its FPR technology eliminates blurry images and flickering (image overlap). Samsung says FPR is outdated.

Getting on track

The chief of LG Electronics’ television business said its 3D sets are receiving more attention in developed markets, including the United States.

``I am feeling so good,’’ the chief of LG’s television division Kwon Hee-won told The Korea Times.

``It’s too early to talk about overall reviews because our 3D televisions are rolling out step-by-step. But we are quite confidant,’’ the top executive said.

Kwon said its TV inventories have been well-managed and added it won’t threaten its bottom line in profit.

LG doesn’t have a plan to cut its earlier prediction in TV sales of 40 million or set the target higher because of uncertainties over economic trouble in southern Europe, according to the executive.

``LG Electronics is closely monitoring Greece’s debt crisis and sales targets will have greater flexibility according to market situations,’’ said Kwon.

The chief gave a slight smile after being asked whether LG has any plan to launch a television that uses Google’s mobile platform.

HanaDaetoo Securities, a leading local brokerage, said LG will see an improvement in terms of operating profit as the global consumer electronics market is approaching a seasonally-favorable period.

``With the turnaround of the handset division and the rising demand for high-end digital products including televisions in the latter half, LG Electronics will report 200 billion won in operating profit in the third quarter, which is an increase of 50 percent from the second,’’ the brokerage reported to its clients.