LG “SK should admit it wrong… there was no demand for excessive compensation”

Input 2021.03.11 15:58

In connection with the final decision on the battery trade secret infringement dispute between LG Energy Solutions and the US International Trade Commission (ITC) on the 11th of SK Innovation’s board of directors, regarding the position that “if the compensation required by LG is excessive, it cannot be accepted” LG Energy Solutions refuted, “It is impractical to call a proposal based on the US Federal Trade Secret Protection Act unreasonable demand.”

LG Energy Solutions issued a statement on this day and said, “It is regrettable that the difference in perception that it does not acknowledge this is a pity even though the final decision was made that it was certain that ITC had stolen the trade secrets in all areas of the battery. “The beginning of the agreement is to acknowledge this decision by the side that has deleted and concealed it.”

In addition, he criticized that “it is absurd to say that the company’s proposal based on the US Federal Trade Secret Protection Act, which can be called a global standard, is unacceptable because it is an unreasonable demand from the perpetrator’s point of view.”

LG Energy Solutions said, “We have been negotiating with competitors according to the standards, and those standards will be maintained consistently in the future.” He added, “If a competitor sincerely comes to the negotiating table and makes a proposal and discusses, as in the recent Botox settlement case, various compensation methods such as cash, royalties, and shares will be possible that shareholders and investors can fully agree with.”

Prior to that, SK Innovation held an expanded audit committee on the 10th and said, “We will look closely at the requirements of competitors from the board level in the future. Will be unacceptable.”

In the meantime, SK Innovation has emphasized that it has been banned from imports from ITC without properly verifying whether or not the trade secret has been infringed due to document deletion in this ITC lawsuit.

The two companies are trying to reach an agreement after the ITC ruled over SK Innovation on the 10th of last month (local time), but the gap in compensation is large and the negotiations are having difficulty. It is known that the outlook for the settlement amount differs by up to 16 times, with LG Energy Solution asking for more than 3 trillion won, while SK Innovation hopes for less than 500 billion won.