UK firm Nanoco Sues Electronic Giant LG in New Intellectual Property Battle

UK firm Nanoco has sued LG, the electronic giant, the Independent has reported. In the lawsuit, Nanoco claims that the South Korean company willingly infringed its TV technology patents.

Cadmium-Free Quantum Dots

The Nanoco patent case was filed in Texas state. According to the lawsuit, Nanoco says that LG infringed its patents around quantum dot technology. Quantum dots refers to nanomaterial that’s 1000 times smaller than the human hair.

The technology is used to enhance the color range, making it visible to the human eye when light shines through them. This has made quantum dot technology an important aspect in the production of modern day televisions. Production of quantum dots includes the use of cadmium, a toxic heavy metal.

However, Nanoco’s tv technology patent lawsuit claims that the UK firm introduced the use of cadmium-free quantum dots. The company says it developed the technology and patented a successful way of mass producing the cadmium-free quantum dots known as seeding.

Previous Infringement

Between 2020 and 2023, Nanoco says its patents were validated after it filed a lawsuit against another electronic giant, Samsung. During this trial, the Patent Trials and Appeals Board in the US ruled that the patents held by the UK firm were valid.

“Nanoco proved the value and validity of its IP as part of the Samsung litigation process. At that time, we reiterated our intent to aggressively pursue other potential infringers of our IP to ensure a fair outcome for shareholders of Nanoco,” Nanoco Chairman Dr. Jalal Bagherli said.

Samsung settled Nanoco’s TV patent infringement claim amount of £150 million in 2023. Nanoco’s willful infringement claim alleges that LG infringed its intellectual property knowing that it was doing so. Once willful infringement of intellectual property cases are proven, US judges ward damages.

In the case against LG, Nanoco has engaged the Caldwell, Cassady, and Curry law firm to represent it. The law firm successfully litigated Nanoco’s lawsuit against Samsung. Although the litigation carries a level of risk, the board holds that the potential benefits justify the legal action. The action seeks to safeguard Nanoco’s intellectual property while offering value to its shareholders.

“While there is potential for damages, litigation itself carries considerable inherent risk and the Board must weigh the opportunity versus the cost. In this instance, we believe the potential return to be worth the costs of commencing litigation,” Bagherli added.

Permanent Injunction

In the LG legal dispute, the UK firm has not attributed monetary value to its claim. Although the company says it’s open to a commercial solution, it is seeking a permanent injunction from the court alongside monetary damages.

“Nanoco continues to remain open to finding a mutually acceptable commercial solution, but the action is appropriate to take at this time in the best interest of the Company and its shareholders, to defend one of our core assets,” Bagherli said.

LG opted not to comment on the case. “As this case remains ongoing it would be inappropriate to comment further at this stage,” an LG spokesperson said.

Nanoco has commenced multiple restructuring changes as it works on scaling and commercializing its TV technology. Recently, the UK company unveiled plans to increase its commercial engagements as it shifts towards scaled production.

Last year, the Runcorn-based company reduced jobs in a move to preserve its cash assets even as it explored a sale through its financial advisors. However, the Samsung settlement provided it with considerable financial resources to keep its operations afloat.

Overall, Nanoco’s scores point to strong cash management and revenue growth. However, the company is affected by bearish technical indicators and financial instability. Although it faces significant risks due to balance sheet and profitability concerns, the strategic events that the firm has taken recently provide a positive outlook.