‘Battery War’ ends with LG victory… SK 10 years ban on US imports

US ITC finalizes infringement of trade secrets LG’s hand Temporary grace period for Ford and Volkswagen

LG “clear recognition of technology takeover”… SK President’s desperate veto seems likely to reach agreement

(Washington Seoul = Yonhap News) Correspondent Lim Ju-young, reporter Kim Young-shin = LG Energy Solutions and SK Innovation[096770]LG Energy Solutions won the dispute over the two years of infringement on the trade secrets of electric vehicle batteries.

The U.S. International Trade Commission (ITC) issued a final decision on the 10th (local time) to admit LG’s allegations in the case of infringement of trade secrets filed by LG Energy Solutions against SK Innovation.

ITC judged that SK Innovation infringed on the trade secrets of LG Energy Solutions on that day, and applied the violation of Article 337 of the U.S. Customs Act and ordered ’10 years of ban on imports from the United States’ for batteries and parts that infringed trade secrets.

It also issued a 10-year order to stop infringing trade secrets, prohibiting production, distribution and sales in the United States even for items that have already been imported.

At the same time, ITC also imposed a postponement measure allowing SK to supply batteries from the US for Ford and Volkswagen for a certain period of time.

SK’s import of battery parts and materials for Ford electric vehicles is allowed for four years, and for Volkswagen electric vehicles for two years. The import of battery products for battery repair and replacement for Kia electric vehicles already sold in the US was also allowed.

Despite the ban on the import of SK Innovation’s batteries and parts, it paved the way for a temporary supply of SK batteries so that Ford and Volkswagen’s automobile production would not be disrupted.

According to Reuters, Ford said the ITC’s decision supports its plans to launch the electric vehicle F-150 in mid-2022.

Earlier, LG applied for an investigation to ITC in April 2019, claiming that SK Innovation has removed its manpower and infringed trade secrets regarding rechargeable battery technology used as a battery for electric vehicles.

In a preliminary trial in February last year, the ITC decided to lose early on the grounds that it destroyed evidence of the removal of LG battery technology against SK. This final decision is an extension of that.

Some predicted that ITC could come up with a compromise that reflects SK Innovation’s claims, taking into account the negative impact on the US economy in case of SK Innovation’s loss, but ITC cited the preliminary decision as it was and gave the hands of LG Energy Solutions.

However, the ITC procedure is similar to the Korean administrative trial and goes through the Presidential approval process. The President has a 60-day review period and can exercise vetoes for policy reasons.

The possibility of President Joe Biden’s veto over electric vehicle production disruptions remains a variable.

As LG Energy Solutions won the ITC trade secret infringement dispute, which is the headquarter of the’battery war’ between the two companies, SK Innovation was inevitable.

Although the import ban has been postponed for a certain period of time on Ford and Volkswagen volumes, the industry is that this temporary permitting measure is not very effective considering the time when SK Innovation’s battery 1 and 2 plant currently under construction in Georgia, USA is completed and operated It is analysis.

The ITC dispute that the two companies filed against each other for patent infringement is currently ongoing. As LG Energy Solutions won the case of infringement of trade secrets, it is highly likely that derivative disputes such as patent infringement will end with a favorable conclusion for LG Energy Solutions.

LG Energy Solutions responded to the ITC’s final decision on that day, saying, “SK Innovation has clearly acknowledged the misconduct by stealing its trade secrets and technology. SK humbly accepted the result and made a corresponding proposal to close the lawsuit as soon as possible. I urge you to actively take part in doing this.”

SK Innovation emphasized the public interest that its battery business conforms to the US government’s eco-friendly policy and creates economic effects during the deliberation period of the US President’s veto. He said he would.

The industry expects that SK Innovation, which was desperate by the final ITC decision on the day, will actively reach an agreement with LG Energy Solutions to normalize its business in the US.

SK Innovation may disagree with the ITC decision. Any objection to the results may be appealed within 60 days from the date of the final decision or the end of the review period by the President.

Upon appeal, the Federal Circuit Appeals Court hears and the Federal Supreme Court determines. However, it takes about two years for the results of the appeal to come out, and it is evaluated by the industry that it is not a highly effective card from the standpoint of SK Innovation because the import ban and the suspension of trade secret infringement continue during the appeal period.

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2021/02/11 11:25 sent