LG Display to collect $95 mn in damages from Sharp for patent violation

[Photo by Yonhap]

Korea’s LG Display can add one-off gain in its income statement as it expects to collect damage compensation of 120 billion won ($95 million) from Japan’s Sharp Corporation upon winning international arbitration over a patent dispute.

Sharp on Tuesday disclosed it accounted for a special loss of 11.7 billion yen ($95 million) in damages upon admitting its violation of patent use contract with LG Display.

Earlier in 2013, LG Display and Sharp entered into a cross-license agreement to allow each other to use intellectual properties related to display technology. The agreement was to use patents held by each other and pay usage fees. But LG Display found Sharp had violated patent contract in 2019 and sought arbitration from the Singapore International Arbitration Center.

The arbitration administration body made decision this month, siding with LG Display. Sharp accepted the decision on May 23, admitting to patent infringement.

The decision would bring a one-off income of 120 billion won to LG. The amount triples the display maker’s a meager operating profit of 38.3 billion won generated in January-March period this year. The company is projected to deliver weak result for the second quarter as well due to slow LCD panel demand.

On Thursday, shares of LG Display traded down 1.16 percent at 17,000 won in the afternoon session.

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