LG Chem and Innox settles patent lawsuit over OLED encapsulant

LG Chem and Innox Advanced Materials have ended their patent lawsuit over organic light emitting diode (OLED) encapsulation materials.

LG Chem withdrew its suit last week, people familiar with the matter said. The company filed the lawsuit in March last year.

LG Chem have claimed Innox violated its patents related to OLED encapsulants.

The pair supply the materials to LG Display for the latter’s OLED panels. Encapsulants are used to protect the light emitting layer from water and oxygen.

LG Chem supplied to its display affiliate first but Innox also began supplying in mid-2018. Innox quickly increased share of supply to LG Display by offering the materials at a cheaper price than LG Chem. Due to this, LG Display have asked for price cuts from LG Chem.

LG Chem’s lawsuit against its rival is considered a reaction to these market changes.

Following its lawsuit, Innox retaliated by requesting four of LG Chem’s patents to be invalidated in August last year. Innox succeeded in invalidating a patent on “adhesive film and a method of encapsulation of organic electronic device using the film.”

Innox have also withdrawn two of its patent invalidation requests.

Both LG Chem and Innox are expected to see their OLED encapsulant supply increase going forward thanks to LG Display beginning operation of its OLED factory at Guangzhou, China in July. 

Around 1.2 million units of OLED TVs are expected to be shipped in the fourth quarter, according to Omdia.

Meanwhile, optical film company Shinwha Intertek is also planning to enter the OLED encapsulant market. Previously mostly offering optical film for liquid crystal display panels, the company is in talks with LG Display to supply OLED encapsulant.