2010-08-04 14:08

Taiwan's Chimei Innolux Corp, a maker of liquid-crystal displays (LCD), filed suit in the United States against Sony Group in early July over alleged patent infringement.

A similar complaint was also filed in Beijing No 2 Intermediate People's Court.

The company's move came after Sony initiated legal proceedings in US district court in March that claim Chimei and Hong-Kong-listed LCD monitor maker TPV Technology Ltd infringed on its patents in making televisions and computer monitors, according to the Taipei Times.

Chimei Innolux seeks to halt the sale of Sony products - including Bravia televisions and its Cybershot digital cameras and digital photo frames - in the US and is also asking for compensatory damages, without specifying an amount, Bloomberg Newswires reports.

The case announced by Chimei Innolux is "not specifically related" to Sony's earlier complaint against it, Bloomberg cited Spokesman Eddie Chen as saying.

"We're confirming the facts and can't comment any further at this point," the newswire quoted Tokyo-based Sony spokesman Atsuo Omagari as saying.

"We are committed to protecting our valuable intellectual property, our industry partners and, most importantly, our customers," the Taipei Times quoted Peterson Tien, Chimei Innolux's general counsel and vice-president, as saying.

"After our recent three-way merger, our intellectual properties portfolio has strengthened substantially and has become more diversified."

Chimei Innolux, formed in March by the merger of Chi Mei Optoelectronics Corp, Innolux Display Corp and TPO Displays Corp, supplies panels and partially assembled screens for use in TVs, computer monitors and other electronics products.

Following other recent patent battles - between Acer and Hewlett-Packard, and HTC and Apple - Chimei Innolux's move is not a surprise as patent litigation is a way to block competitors, Union Daily said.

Patents are like weapons, Chinanews.com quoted Wang Zhentang, chairman of the Acer board of directors as saying.

A company should be clear about "the weapon's condition" and keep itself alert for battle, Wang said.

Foxconn Technology Group, long the patent champion in Taiwan, has a far-reaching plan behind the legal case now that it holds a stake in Chimei Innolux, industrial insiders said.

As Foxconn has extended its business along the industrial chain from component making to sale of complete products, seeking more LCD orders for Chimei Innolux and securing more outsourced manufacturing business might be goals for the Taiwan electronics giants in the future negations with Sony, insiders noted.

Chimei Innolux elected to sue Sony both in the US and China, marking the significance of the two markets.

But at the same time, the Taiwan company only seeks halt sale of Sony products in the US, leaving the door open to possible future cooperation on the Chinese mainland, Chinanews.com said.