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This captured image shows a unit of Insignia-branded TV, which advertises itself as a 40-inch panel with a 16:9 aspect ratio although it actually is a 39.5-inch panel with a 20:11 ratio. / Korea Times file

Taiwan's Innolux faces lawsuit over incorrect screen sizes

By Kim Yoo-chul

Major display panel suppliers have offered a variety of screen sizes for TVs.

However, as displays have become commoditized, the outlook for the display industry is no longer as promising as anticipated by industry leaders who have invested heavily in facilities.

Worse, they are losing customers to smartphones and tablets.

With their profit margins being squeezed, display suppliers are struggling to cut costs, even relying on unfair methods.

Taiwan’s Innolux, one of the global display industry leaders, has been aggressively producing a variety of panels in an attempt to compete effectively with its bigger South Korean rivals _ Samsung Display and LG Display.

However, the outfit faces lawsuits by consumer rights groups in major markets for selling 39.5-inch TV panels as 40-inch ones. According to industry sources, Innolux’s 39.5-inch TV screens were found to have been causing viewing problems.

“Innolux’s 39.5-inch panel TVs, which are being sold as 40-inch TVs, are now available in China and the United States. But they don’t guarantee a 16:9 aspect ratio as 40-inch TVs should. The company’s misleading marketing should be immediately addressed,” an industry source said.

An aspect ratio represents the width-to-height ratio of an image. There are several aspect ratios for different purposes, but the 16:9 ratio is one of the most common as it enables high-definition viewing of images and videos on televisions.

A television that is described as “40 inches diagonal” or “40 inches” might actually have a smaller diagonal viewable picture screen size. This practice of rounding dimensions to the nearest integer is a longstanding, industry-wide practice.

The official said consumers who bought 40-inch TVs using Innolux displays that are actually 39.5-inch TVs may have trouble in viewing content designed for the 16:9 aspect ratio as such TVs actually have a 20:11 aspect ratio.

“Since the fourth quarter of last year, Innolux has been selling 39.5-inch panels disguised as 40-inch ones to customers. Those TVs don’t effectively display content designed for the 16:9 ratio as the Innolux panel measures 878 millimeters by 485 millimeters,” said the source.

“For a TV panel to effectively show 16:9 ratio content, it should measure 874 millimeters by 492 millimeters.”

The horizontal-to-vertical ratio of a 39.5-inch screen is 1.09227. For a TV screen to properly display 16:9 ratio content, the vertical ratio should be 1.7778, according to the International Measurements Display Standard.

Therefore, the Taiwanese firm should indicate the aspect ratio of its 39.5-inch panels to 20:11, said industry officials.

Best Buy, a top U.S. electronics retailer, sells an Insignia TV that uses Innolux’s 39.5-inch screen at $249.99. The TV, which has a model number of NS-40D510NA15, is categorized under the 40-inch class and described as supporting the 16:9 aspect ratio.

Section 5 of the Federal Trade Commission Act in the United States “prohibits entities from engaging in unfair or deceptive acts or practices in interstate commerce.”

According to the law, “unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce,” are unlawful.

In China, the Skyworth 40E5ERS TV, which also uses a 39.5-inch Innolux screen, is available via the Suning website at 1,799 yuan(

https://product.suning.com/106033595.html

).

According to industry officials, Innolux is allegedly the first major display panel supplier to wrongly market 39.5-inch screens as 40-inch ones.

“If those TVs using Innolux’s 39.5-inch displays are permitted to go on store shelves, then consumers will end up buying them without knowing that they will have distorted views of contents on their TVs,” said an executive at a major supplier for LG Display and Samsung Display.

Prior to Innolux, several TV manufacturers and sellers in the United States have faced legal issues regarding inaccurate marketing of TV screen sizes.

In 2010, a California court ruled that those manufacturers and sellers rounded off the viewable screen sizes of the television models they manufacture and/or sell (in inches, measured diagonally) to the nearest whole number.

These companies agreed to contribute about $1.1 million worth of televisions and other audio-visual equipment to public schools and other institutions throughout the U.S. They also agreed to pay costs and other relief in the amount of $1.25 million.

Such legal problems came after TV screens 42 inches and above started becoming more popular.

Nevertheless, the global shipments of such TV panels are projected to increase from 36.1 percent in 2013 to 40.7 percent in 2014, while those of 32-inch panels are projected to drop from 35 percent to 31.3 percent, according to market research firms.