SHARP accuse Chunghwa Picture of LCD infringement and schedule to send personnel to proceed with negotiation on January 29, 2002

The Japan-based manufacturer, SHARP, filed a complaint with the Tokyo District Court on January 24, 2002 against Chunghwa Picture Tubes, Ltd. (hereinafter referred to as “Chunghwa Picture”), which is suspected of infringing three LCD patents owned by SHARP, and petitioned the court to prohibit Chunghwa Picture from selling related products in Japan.  In this regard, Chunghwa Picture indicated that local TFT-LCD providers had faced pressure placed by different Japan-based and Korea-based manufacturers’ accusation of patent infringement (license).  Chunghwa Picture has invited SHARP to Taiwan to negotiate for the patent issues on February 20, 2002.  SHARP will also proceed to negotiate with local TFT-LCD providers.  The local providers are aggressively striving for the possibility of cross license.

Chunghwa Picture revealed that it had instituted an invalidation action with the Intellectual Property Office in Taiwan.  The invalidation action is pending in the Intellectual Property Office now.  The TFT products distributed by Chunghwa Picture to Japan account for a rate less than 4% of the sale, and the order has exceeded 30% of the output for the time being.  Therefore, no significant impact will be produced therefor.

     Translated by Corrina Wu