LG accuses the Chinese manufacturer HiSense for having violated four of its patents relating to television technologies. The battle promises to be fierce between the two Asian manufacturers.
LG Electronics raises the tone. The South Korean manufacturer has filed a lawsuit against Hisense, because its Chinese counterpart, specialized in the production of televisions, allegedly violated its patents relating to television, as announced Tuesday the staff of LG Electronics. The South Korean electronics manufacturer has filed a lawsuit against its Chinese rival in the California court for allegedly violating four patents, without disclosing the amount of damages claimed.
In detail, the first patent in this case concerns LED assembly technology, which is used to transfer LED backlights to an LCD panel in a stable manner. The second patent relates to the user interface technology that helps users to recognize third-party devices – such as DVD players or computers – when they are connected to the TV, while the third patent concerns its technology side that makes the images sharper on the screens. Finally, the last patent in dispute concerns technology that increases Wi-Fi data transfer rates on TVs.
LG claims that the majority of TVs sold by Hisense in the United States use these patents. The Korean automaker’s staff said they sent warnings and requests for talks “several times” to Hisense earlier this year. No response from the Chinese company, accused of acting “without sincerity”, forcing the company to take legal action. Fighting down the side of LG, who said in a statement now want to “protect aggressively” his patents.
LG still behind Samsung
As a reminder, LG is the second-largest TV maker in the world after Samsung, but its profits have been negated by its rival and other Chinese manufacturers earlier this year. During the second quarter, LG saw its shipments decrease 700,000 units compared to the previous quarter, which alarmed the entire company because it is generally in the second quarter that TV manufacturers record their best performance due to the launch of new products at their highest prices. LG saw its profits halve in the second quarter compared to the same period last year.
Hisense, for its part, has become the fifth-largest company in terms of turnover and fourth in terms of shipment volume. According to IHS Markit, Samsung had the largest share of the global TV market in the second quarter, with 31.5% of the market. Next, are LG (16.5%) and Sony (8.8%), but Chinese manufacturers TCL and Hisense are not far behind, with respectively 6.3% and 6.2% of market share. In terms of shipping market share, Samsung saw its share rise to 19.4 percent of the market in the same quarter, while LG was second at 12.4 percent. TCL and Hisense, respectively, ranked third and fourth, controlling 9.4% and 7.3% of the market.
Still, LG has since recovered somewhat from this setback, its profits in the third quarter being only slightly lower than those of the previous year. When announcing the third-quarter results of its current fiscal year, LG said it was optimistic and promised to offer a “stable profit structure” for its range of OLED TVs that would measure a device. high-end consumer goods for future growth.