What Display Daily thinks: Whatever your position may be on IP theft, and it is not always as straightforward as it may appear, the Korean example should be seen as part of what is going to be a trend in the tech industry as a whole, protections against Chinese companies gaining any unfair advantage in their capacity to compete at the cutting edge. The US has taken a very strong stance, sometimes to the detriment of ongoing business practices, to protect semiconductor IP that could be used for advanced military applications. Korea views OLED technology as strategically vital and has more leeway in the light of US sanctions to take ever stronger measures to protect its display industry.
The results may provide some short-term succor but there is always the danger that only a handful of companies, with the necessary legal firepower, will dictate these new IP policies and actions. I am all for protecting your rights and investments in technology, but to grow the display market there will probably come a time when the question of how IP is shared and licensed becomes a blocker for innovation, particularly for startups in the industry.
So, there may not be an argument against the Korean courts’ decision with regards to this particular case, but there are far-ranging implications that need to be considered. However, I don’t expect anything but an increase in IP warfare for the foreseeable future. It’s a tough business environment and display manufacturers are going to take advantage of any and all opportunities to thwart their competitors.
Samsung Employee Indicted for IP Theft
A former senior Samsung Display researcher was indicted in South Korea for allegedly leaking proprietary OLED technology secrets to Chinese display companies. The researcher worked at Samsung for over 10 years leading development of production facilities and equipment. After leaving Samsung, he started a domestic display company and a Chinese company to produce competing OLED products.
Prosecutors allege the researcher stole trade secrets related to laser and inkjet technologies used in Samsung’s OLED manufacturing. He provided the stolen IP to his companies to replicate the technology. Samsung estimates losses of 340 billion won ($243.6 million) from the leaks. This comes after a 5-month investigation and the researcher fleeing to China. He later returned voluntarily. In 2021, five of his accomplices were convicted for their roles.
The case highlights the ongoing threat of intellectual property theft, especially targeting advanced display tech. Companies must vigorously protect proprietary secrets. Strict legal action for overseas tech leaks acts as a deterrent has been a feature of the Korea’s perception of threats from competition to its OLED dominance, particularly from China.
