According to a joint press release from LG Energy Solution and Tulip Innovation, which manages patent licenses for LG and Panasonic, the two companies announced on June 11 that they have signed a patent licensing agreement. As part of this agreement, they will withdraw all ongoing legal actions in Germany, China, and South Korea.
Founded in 1997, Xinwangda specializes in lithium-ion batteries and recently ranked among the top 10 globally in electric vehicle battery market share, according to market research firm SNE Research.
The agreement is expected to lead to the withdrawal of LG Energy Solution's investigation into unfair trade practices related to vehicles equipped with Xinwangda batteries, such as the Volvo Korea EX30 and Renault Grand Koleos.
Both parties stated that "all terms will remain confidential," so specific details of the licensing agreement have not been disclosed. This resolution is viewed as a significant victory for LG Energy Solution against the emerging competitor Xinwangda in the patent arena.
Previously, LG Energy Solution had expressed its commitment to combat what it termed "patent free-riding" by latecomers who indiscriminately use its strategic technologies without proper contracts. The company engaged in over two years of patent litigation against Xinwangda through Tulip Innovation.
LG Energy Solution claimed that Xinwangda infringed on several strategic patents, including the "Electrode Assembly Structure Patent" (EP 2378595 B1). Last year, a German court ruled in favor of LG, ordering a sales ban on batteries using the technology, the recall and disposal of remaining batteries, and damages. The company also secured sales bans on two other European patents through German court rulings, marking three victories in total.
Industry experts anticipate that this licensing agreement may lead to similar cases in the future. LG Energy Solution is actively pursuing the establishment of a global licensing market as part of its strategy to combat patent free-riding in the battery industry.
A representative from LG Energy Solution stated, "This agreement confirms the principle that companies dedicated to technological innovation deserve fair compensation. As an original innovator in the battery industry, we will take the lead in creating a healthy industrial ecosystem where all companies can compete fairly."
As of the end of March this year, LG Energy Solution holds the world's largest battery patent portfolio, with 56,453 registered patents and 97,752 pending applications.
* This article has been translated by AI.
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