LG, SK may seek settlement after ITC's final ruling, damage claim is the key
이 글자크기로 변경됩니다.
(예시) 가장 빠른 뉴스가 있고 다양한 정보, 쌍방향 소통이 숨쉬는 다음뉴스를 만나보세요. 다음뉴스는 국내외 주요이슈와 실시간 속보, 문화생활 및 다양한 분야의 뉴스를 입체적으로 전달하고 있습니다.
LG wants 2 to 3 trillion won ($2.68 billion) whereas SK sticks to damages within million dollars range. The claim would hinge on ITC ruling.
There can be four possible scenarios of the outcome.
Scenario 1: ITC to uphold preliminary ruling against SK
ITC may uphold its preliminary ruling against SK Innovation, given the 1996-2019 statistics where preliminary rulings have rarely been reversed in the case of infringement of trade secrets.
The consequence would be enormous if SK loses. For example, SK Innovation will be banned from importing battery products and parts to the U.S. in the future. Its battery plant in Georgia would virtually come to stop. SK must bear the burden of compensations to EV finished car makers due to delivery failure. Sources said SK has so far received battery orders worth about 20 trillion won in the U.S.
Scenario 2: Re-examination ruling or U.S. President’s veto
The ITC could order its judges to re-examine the case, which is the best scenario for SK Innovation. The re-examination could mean the case should be revisited. Experts said this cannot be generalized but the odds are low based on the statistics of the ITC’s past rulings.
In addition, there is a possibility that the ITC partially upholds the preliminary ruling but recommend investigating 'public interest'. Even if SK Innovation loses in the ITC, it may be saved by President Joe Biden’s veto exercised the importance of SK’s Georgia plant in job creation and local economy.
This also bodes favorably for SK Innovation, which could use the veto to lower its settlement money.
But there has been no single case of presidential veto exercised over the ITC’s ruling on trade secret infringement. Even if the presidential veto allows SK to import EV batteries to the U.S., it cannot change the fact of trade secret infringement, which means SK could face a problem in its business.
In this case, LG may take a step to file a civil suit with the federal District Court in Delaware against SK based on the ITC’s ruling to raise the amount of damages sought as much as possible.
3. Civil suit with Delaware court
If the two companies fail to reach an agreement even after the final ITC decision, it will eventually lead to a civil lawsuit in the Federal District Court in Delaware. Some say that if LG's allegations are accepted by the court, the court may rule a compensation of over 6 trillion won against SK.
The compensation was calculated based on SK’s global orders worth up to 50 trillion won between 2017 and 2019 when LG argues it was suffered by SK’s trade secret infringement, unfair profits taken by SK due to infringement of trade secrets against LG, and future damages to LG from EV battery business with high business potential.
The amount of settlement LG requested to SK is known to be up to 3 trillion won, and industry watchers said punitive damage compensation is excluded from this amount.
4. Settlement after ITC ruling
Industry watchers said the two companies are more likely to enter into an agreement after the ITC ruling. An industry official said the two are unable to narrow down their disagreements, but the mood can change after the ITC ruling.
In most IPR lawsuit cases, the parties concerned end up in agreement, an expert said.
Even if the ITC upholds its preliminary ruling, there would be no problem with their settlement. Since it is a civil lawsuit, a potential U.S. ban on SK can be lifted if the two companies reach an agreement later. However, if SK loses, LG will have increased bargaining power, demanding more settlement money.
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
Copyright © 매일경제 & mk.co.kr. 무단 전재, 재배포 및 AI학습 이용 금지
- Daesung Eltec up for sale, shares fly by daily 30% limit - Pulse by Maeil Business News Korea
- Pandemic cuts Korea’s air traffic 59% and duty-free sales 38% in 2020 - Pulse by Maeil Business News Korea
- ‘Electros’ may become the new name for SK Wyverns under Emart parent - Pulse by Maeil Business News Korea
- Korea’s big 3 battery makers take up nearly 35% in EV market in 2020 - Pulse by Maeil Business News Korea
- S. Korean retail investors offload nearly $54 mn in U.S. GameStop stock on Fri - Pulse by Maeil Business News Korea
- 강경준, 상간남 피소…사랑꾼 이미지 타격 [MK픽] - 스타투데이
- AI가 실시간으로 가격도 바꾼다…아마존·우버 성공 뒤엔 ‘다이내믹 프라이싱’
- 서예지, 12월 29일 데뷔 11년 만에 첫 단독 팬미팅 개최 [공식] - MK스포츠
- 이찬원, 이태원 참사에 "노래 못해요" 했다가 봉변 당했다 - 스타투데이
- 양희은·양희경 자매, 오늘(4일) 모친상 - 스타투데이