[FETV=김창수 기자] SK Innovation and LG Energy Solutions are running in parallel without narrowing their disagreements even after the final decision of the US International Trade Commission (ITC) regarding the infringement of electric vehicle battery trade secrets. In the lawsuit, Jin SK Innovation once again expressed its position through the board of directors that “the other party’s request for settlement funds cannot be accommodated”. Among the audit committee members, “the results were not good because of the lack of experience in the US judicial system.”
LG Energy Solutions also adhered to the existing position and met SK Innovation’s position. The company said, “It makes no sense that it cannot accept the proposal based on the standard, which can be called an international standard,” and said, “There are various compensation methods besides cash,” implying that it will not bend the requirements.
Although a month has passed since the final decision of the ITC on February 10 (local time), the two sides have not narrowed the clear gap of perception and have not made progress in negotiations. In the industry, there are voices of concern that the dispute between the two sides will spread into a’feeling fight’, leading to a contraction in the domestic battery market.
◆ SK “We need to give a lecture on responding to the international judicial system… Other proposals are unacceptable” = According to the industry, SK Innovation held an expanded audit committee on the 10th with all outside directors attending and conducted an in-depth review on the’battery litigation battle’. On the 10th of last month, the ITC raised the hands of LG Energy Solutions in its final ruling and ordered a 10-year ban on imports of parts and materials into the United States in relation to the cells, modules, and packs of SK innovation batteries.
The audit committee members pointed out that the company was inexperienced in responding to the US judicial system due to the lack of experience in global disputes. In addition, he ordered that the compliance (compliance with procedures) system should be established through the appointment of an external expert on the occasion of this litigation.
The board of directors also reaffirmed the position that LG Energy Solutions cannot accept the compensation required. The Audit Committee commented, “We will closely review the requirements of competitors at the board level in the future.” In fact, “SK Innovation has no meaning to continue its battery business in the United States, or requirements at a level that significantly lower business competitiveness will be unacceptable.” He suggested that negotiations would not be easy.
◆ LG “I’m sorry for not admitting the judgment… It is not an unreasonable demand” = LG Energy Solutions is also showing its adherence to its existing position. LG Energy Solutions said, “It is regrettable that the difference in perception that it cannot admit is regrettable even though ITC, a well-established organization, has concluded that it is certain that (SK Innovation) has stolen trade secrets.” “Acknowledging this decision will be the beginning of the agreement.” .
In addition, “It is unreasonable to mention that our proposal based on the US Federal Trade Secret Protection Act, which is a global standard (international standard), is an unreasonable request and cannot be accepted. I don’t think there is sincerity for solving the problem.”
The criteria for calculating damages based on the Federal Trade Secret Protection Act disclosed by LG Energy Solutions are ▲Past damages suffered by the company due to the infringement of trade secrets of competitors ▲Future damages to be suffered from infringement of trade secrets ▲Compensation for damages in case of malicious technology theft Punitive compensation up to twice as much as ▲ lawsuit-related expenses, including attorney fees. In the industry, it is understood that LG Energy Solutions is requesting compensation in the range of 3~4 trillion won.
LG Energy Solutions said, “The negotiation standards will remain the same in the future.” As seen in the recent Botox agreement, various compensation methods such as cash, royalties, and equity are possible.
◆ Continued negotiation difficulties… Even if the industry is concerned about “weakening competitiveness” = In the industry, it seems that SK Innovation and LG Energy Solutions are not able to resolve the clues of the agreement even though they have passed the final ITC decision for more than a month. In addition, there are voices of concern about the decline in competitiveness of’K-battery’, which is prominent in the global market.
An official in the battery industry said, “I had some expectations, but I am concerned that the two sides are still unable to reach an agreement. “It is a pattern of intensifying emotions,” he said. “I hope that they will show concessions for the win-win and development of the domestic battery industry.”