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LG-Quanta patent case reaches U.S. Supreme Court

Posted: 27 Sep 2007 ?? ?Print Version ?Bookmark and Share

Keywords:microprocessor? LG Electronics-Quanta patent suit? patent infringement?

The U.S. Supreme Court announced Sept. 25 it would review the patent suit LG Electronics filed against Taiwan's Quanta Computer Inc. for infringing patents on microprocessor chips in its PCs, according to a Reuters report.

South Korea's LG Electronics filed the suit against Quanta, Quanta Computer USA, Bizcom Electronics, Compal Electronics, Sceptre Technologies, Everex Systems, First International Computer, First International Computer of America and Q-Lity Computer.

The U.S. District Court for Northern California ruled that Quanta and the other companies did not infringe on LG's patents but was overturned by a federal appeals court in July 2006.

The case hinges on whether patent holders can demand royalties from multiple companies during the manufacturing process. Quanta argued that LG had licensed its technology to Intel, which made microprocessor chips and sold it to Quanta. Quanta then used the chips to make computers under contract for Dell, Hewlett-Packard (HP) and Gateway Inc. LG, on the other hand, countered that it structured the license so that it did not extend to any of Intel's customers.

LG has also filed a separate patent infringement suit against Quanta a few weeks ago for infringing on four patents used to make DVDs. The suit alleges Quanta of using LG's intellectual property in notebooks supplied to Apple, Dell, HP, IBM, Sony and Toshiba.

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