Sharp and Samsung Accuse AU Optronics and Chi Mei of Patent Infringement

E030912X1 Oct. 2003(E47)

The profit margin of Taiwan’s TFT-LVCD market so far has exceeded that was anticipated earlier this year. But as success brings attack, major corporations like Japan’s Sharp and South Korea’s Samsung recently have once again made their way to Taiwan, raised the issues of patent infringement, aiming at Taiwan’s 2 large domestic LCD manufacturers AU Optronics and Chi Mei.

Currently out of the 5 major domestic LCD manufacturers, only Quanta Display, the subsidiary of Quanta Computer, adopts Sharp’s mass production know-how on their big screen LCDs, freeing Quanta from worries of being accused by Sharp. The remaining manufacturers, however, have all constantly received attorney letters from Sharp.

AU Optronics pointed out, the number of patent applications their company has submitted worldwide so far has reached 1,165, and 201 of which have been approved. AU however, is not at all worried due to its possession of the patent from FDTC Japan, who has currently purchased 20% of AU’s shares, leaving AU Optronics invincible to the foreign companies’ accusations.

    As for Chi Mei, its recent announcement of the adoption of the high efficiency DDS manufacturing process by its 5th generation subsidiary has immediately alerted Samsung, who years ago has released the related factory design concept. Domestic professionals believe however, if it involves the patent of the structural production process, the chance of being accused is higher.  Should Chi-Mei merely improve on the factory automated production processes, the chance of being accused of patent infringement will decrease.
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