BOE and SDC are battling for supremacy in the OLED market, which in 2024 reached 1 billion panels and $54 billion in revenue. Chung Yi, SDC CEO, speaking at the Korea Display Association, said Chinese companies, if not stopped, would control the OLED industry the way they control LCDs.
Samsung is using their technology, manufacturing expertise, and IP to protect their display franchise. They have appealed to the US legal system to prevent BOE from infringing on their patents. The US International Trade Commission (ITC), an independent, quasi-judicial federal agency, ruled in favor of Samsung Display in a patent infringement case against BOE Technology. The ITC ruled that BOE, along with US wholesale component suppliers Injured Gadgets and Wholesale Gadget Parts, infringed on Samsung Display’s patents. Specifically, BOE had violated three of Samsung Display’s OLED patents, while the US firms had infringed upon four. The Commission also ruled there was no violation of Section 337 of the Tariff Act of 1930. These were replacement panels for iPhones and the patent for pixel patterning.
The ruling comes 27 months after the Korean display maker filed its complaint in December 2022, marking a decisive recognition of BOE’s patent infringement. However, the ITC opted not to impose an import and sales ban on BOE’s products in the US, citing a lack of significant impact on the domestic display industry.
A separate trade secret infringement lawsuit that Samsung Display filed against BOE and its subsidiaries at the ITC in October 2023 is expected to reach a preliminary decision in early May. BOE is accused of illegally acquiring Samsung Display’s proprietary technologies through collaborations with the South Korean firm’s former and current employees. Samsung Display filed another patent infringement lawsuit against BOE in the US District Court for the Eastern District of Texas at the end of 2023. The odds have shifted in favor of Samsung Display, as the USITC’s administrative law judge upheld the validity of Samsung Display’s patents in its initial determination in November last year, ruling that BOE and US component wholesalers had unlawfully used three and four of Samsung Display’s patents, respectively. The PTAB also ruled in December and January that four out of the five patents disputed by BOE and three other Chinese display makers remain valid. A decision on the remaining patent is still pending.
The Korean press quoted an industry official (likely someone from SDC):
- “Though the sales and import ban was not granted, the fact that the initial determination was upheld makes this a favorable outcome for Samsung Display, considering the multiple ongoing lawsuits.”
- “Since a lawsuit involving the same patents is currently ongoing at the Texas court, this USITC ruling is expected to have a significant impact on the case.”
Hong Kong legal firm Orrick, on behalf of BOE Technology, claimed a complete victory in the ITC in a case of importance to the OLED market and US consumers. In a decision this week, the Commission found that BOE did not violate Section 337, affirming an Administrative Law Judge’s ruling from last November.
Apart from the aforementioned patent suits, Samsung Display has filed a separate complaint with the USITC accusing BOE and its subsidiaries of damaging trade secrets. Samsung Display argues that BOE allegedly stole trade secrets through current and former employees of Toptec, a partner company of Samsung Display. The USITC is expected to hand down its initial determination by the end of this month.
The ITC opted to kick the can down the road, putting the onus on SDC to seek satisfaction via a state court. Despite the claims of the Koreans and the Chinese, there were no winners except for the outside legal attorneys who can look forward to ongoing charges for legal services.
Barry Young has been a notable presence in the display world since 1997, when he helped grow DisplaySearch, a research firm that quickly became the go-to source for display market information. As one of the most influential analysts in the flat-panel display industry, Barry continued his impact after the NPD Group acquired DisplaySearch in 2005. He is the managing director of the OLED Association (OLED-A), an industry organization that aims to promote, market, and accelerate the development of OLED technology and products.
