Samsung Display files lawsuit against BOE for trade secret theft

A screen capture of ITC’s website

Samsung Display Co., the display unit of South Korean conglomerate Samsung Group, recently filed a lawsuit with the U.S. International Trade Commission, accusing its rival China’s BOE Technology Group Co., the world’s largest liquid crystal display (LCD) manufacturer, of alleged trade secrets theft.

According to industry sources with the litigation Thursday, the Korean display manufacturer’s claim filed on October 31 targeted BOE and its seven subsidiaries, stating that they have infringed on its trade secrets.

Trade secret infringement, or technology theft involving third-party contractual partners or current and former staff members at the affected company, differs from patent infringement, or acquiring open-access technology without consent.

Samsung Display said in the complaint that BOE has infringed on trade secrets associated with its technology in organic light emitting diodes (OLED) panels and modules since late 2017, and Toptec, one of its third-party partners, was involved in the illicit activity.

In March 2023, The Suwon High Court found 11 executives and employees of Toptec guilty of leaking key technology owned by Samsung Display. A potential partnership between Toptec and Chinese companies, including BOE, was raised as a point of discussion during the proceedings.

In the latest complaint, Samsung Display also accused BOE of engaging in trade secret theft even amid a brain drain.

“The U.S. ITC will vote on whether to institute an investigation within 30 days of the filing of the complaint,” a source familiar with the industry said. “A decision for this case will likely be made in early November.”

Samsung Display is also engaged in a legal battle against BOE over patent infringement. The main trial for the patent complaint is scheduled for January 22, 2024, with a final ruling expected on June 17.

Meanwhile, BOE has just begun mass producing panels for Apple. Inc.’s latest iPhone 15 series, after obtaining supply approval from the U.S. phone maker.