SEOUL: A series of patent disputes between the world’s two leading display manufacturers came to the end as Samsung Display and LG Display decided to drop all the related lawsuits early this week.

Analysts said the two giants shared the view that their long legal disputes would undermine their competitiveness in the ever-fierce competitive market. They said the sense of crisis in the display market, which is suffering from a prolonged period of weakness, might have prompted them to bury the hatchet.

Acknowledging that the lawsuits filed against each other over alleged breach of patents were self-destructive and could undermine their growth momentum, the two sides even promised more cooperation on patent issues, hinting the sharing of some of their standard patents.

The two display makers have engaged in a legal battle over organic light-emitting diode and liquid-crystal display technology after the government launched a probe into an alleged technology leak from Samsung Display to LG Display last year.

“The withdrawal of the patent lawsuits will be a stepping stone to build a more constructive relationship and will further help the two improve its competitiveness and contribute to the growth of the entire display market,” said Kim Kwang-jun, the chief intellectual property officer of Samsung Display, in a statement.

The Seoul-based display makers will move their focus toward solidifying their leadership in the market instead of waging a futile war, market analysts said.

“This is an important moment now for the two to beef up competitiveness of their patents,” said Song Young-kwon, a vice president of LG Display. “The withdrawal is aimed at solving problems through conversation rather than through legal disputes.”

Despite the settlement of the lawsuits which lasted more than a year, the ordeal will not likely end without consequences, analysts say.

Chinese display maker BOE recorded the largest sales of display panels, 6.8 million and six million in July and August, respectively, surpassing those of Samsung and LG, according to display market analytic firm DisplaySearch.

Other Japanese display companies such as Panasonic and Japan Display are also rapidly catching up in sales.

Analysts also said amid the slowing TV market which could affect the sales of display panels, there is not much to gain from continuing exhaustive legal battles.

There is still, however, one criminal lawsuit left unresolved, in which 11 former and current Samsung and LG officials and researchers were indicted on charges of leaking OLED technology to LG in 2011. A criminal lawsuit continues proceeding regardless of an accuser’s intention to drop the case or not.

– By arrangement with the ANN/The Korea Herald –