LG Energy Solution and China’s Sunwoda have reached a confidential licensing agreement that brings their two-year patent dispute to a close. The deal, brokered by patent management firm Tulip Innovation—which represents both LG Energy Solution and Panasonic—will result in the withdrawal of all ongoing lawsuits in Germany, China and South Korea.
The agreement follows a series of successful patent rulings in favor of LG Energy Solution. Last year, a German court upheld infringement claims against Sunwoda, ordering a sales ban on batteries using LG’s technology, alongside product recalls and damages. LG Energy Solution also secured additional enforcement actions in Europe based on other patents related to electrode assembly structures.
Under the terms of the settlement, LG Energy Solution will drop its unfair trade investigation in Korea, which had targeted electric vehicles equipped with Sunwoda batteries, including models from Volvo Korea and Renault. Both parties have agreed to keep the specific licensing terms confidential.
Sunwoda, established in 1997, is now ranked among the global top 10 electric vehicle battery suppliers according to market researcher SNE Research. Industry observers suggest that mounting patent risks in key markets likely encouraged Sunwoda to seek a settlement, especially as pressure grew from automaker clients concerned about supply disruptions.
LG Energy Solution has emphasized its commitment to protecting intellectual property and preventing “patent free-riding” by late-entry competitors. The company currently holds more than 56,000 registered patents and nearly 98,000 patent applications worldwide, making it one of the largest patent portfolios in the battery sector.
Following this agreement, LG Energy Solution and Tulip Innovation plan to continue expanding their global patent licensing program. They aim to reinforce a licensing market that recognizes the value of technological innovation and ensures that companies investing in research and development receive fair compensation. Industry experts view this settlement as a potential catalyst for more structured patent licensing practices across the battery industry.
Source: Business Korea (https://www.businesskorea.co.kr/news/articleView.html?idxno=271131)
