Pantech targets LG Electronics to claim patent rights in infringement lawsuit in US

Pantech Co., once South Korea’s No. 2 mobile phone maker, has raised an infringement lawsuit against its former bigger domestic rival LG Electronics Inc. on six network technology patents in the United States, to claim compensations for handset business both had given up.

Pantech filed an infringement suit against LG Electronics on six network technology-related patents with the Eastern District of Texas on September 2. According to the complaint obtained by Maeil Business Newspaper, Pantech demanded compensations within the legal boundary income from the six patents.

The patents cover almost all models across 100 devices including smartphones, tablets, and mobile equipment sold by LG Electronics. The damage claims could amount to millions of dollars as the related wireless technology is a key feature in smartphones.

Pantech introduced itself as the No. 2 smartphone manufacturer in Korea until 2012 based on research and development investment to secure essential communication original technology.

Baffled by a patent suit against handset business it has shuttered, LG Electronics responded that it was studying the case to ready counteraction.

Pantech is currently a subsidiary of Ideahub, which specializes in intellectual property monetization. The company is engaged in monetization business by acquiring IPs such as registered patents and brand usage owned by former Pantech in 2020. It can be regarded as a patent troll.

Normally when manufacturing companies are engaged in patent disputes, they settle the issue by sharing each of their technologies and paying for license cost for cooperative development. The suit raised by Pantech is complex as it merely seeks patent income.

Industry watchers expected fierce dispute between LG Electronics and Pantech, which has set precedent of drawing settlements in other lawsuits involving the same patents.

Pantech has raised more than six lawsuits against global smartphone manufacturers since last year. It signed a mobile technology patent license contract with U.S. smartphone manufacturer BLU in 2021. Pantech will be receiving royalty on BLU smartphones sold in North America for several years.

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