LG-Samsung feud over technology theft intensifies

By Yoon Sung-won

LG Display blasted Samsung Display on Sunday for allegedly stealing its display panel technology, following a prosecution decision to indict several Samsung employees involved in a case of alleged industrial spying.

“We cannot but be outraged about illegal and organized theft of our large organic light-emitting diodes (OLED) display panel technology committed by Samsung Display employees, which has been revealed by the prosecution’s investigation on Friday,” said an LG Display spokesman, citing the company’s statement released on Sunday.

“We urge Samsung to stop technology theft from its rivals, illegally acquiring its rivals’ technology, and damaging its rivals’ reputation through non-business measures such as patent litigation.”

On Friday, the Suwon District Prosecutor’s Office charged four Samsung Display employees and the CEO of an LG Display subcontractor without detention for breaching the unfair competition law and the law protecting confidential business information.

The Samsung Display employees are charged with illegally acquiring LG Display’s business secrets about OLED-related technologies by getting information when visiting the LG Display subcontractor’s office in 2010.

In 2012, Samsung Display claimed LG Display executives had leaked Samsung’s OLED technologies and core human resources to redeem its lagging technology, LG Display said.

LG Display cited the Suwon District Court’s Feb. 6 finding that that five of six indicted LG Display employees were innocent. The company cited the court as saying that most of the information was not secret and that LG Display did not gain financially from the information.

Meanwhile, Samsung Display also released a statement on Sunday, expressing regret over the accusation and urging LG Display to stop making slanderous accusations.

“We regret that the prosecution indictment applied an immoderate standard to usual business between companies,” Samsung Display said.

“The indicted subcontractor briefed our employees about its products to expand its sales, and conducted tests. This is a general business method.”

According to Samsung Display, the cited technology was widely known and therefore there was no reason to acquire the technology illegally.

The company also argued that it is not right for LG Display to claim it is guiltless, considering that a LG Display executive surnamed Kim was fined on Feb. 6 for illegally acquiring information that was a business secret.

“The conviction of the LG Display executive who wrongfully acquired its rival’s OLED technology shows that our concern lies on preventing our technology from leaking, not on stealing from others,” Samsung Display said. “We believe the upcoming trial will reveal that our employees are innocent.”