[Exclusive] This time, the touch screen… Patent monster, Samsung, LG attack

"Technical infringement such as Galaxy S10 + V30"

Zero-click patented to the US District Court

It has been confirmed that Samsung Electronics (005930) and LG Electronics (066570) together with organic light-emitting diodes (OLEDs) have become targets of 'patent monsters' in 'touch screens', which are key parts such as smartphones. In particular, the global patent management company (NPE), which filed this patent lawsuit, has already gained a favorable notice in the litigation with Apple in the United States, raising concerns about the industry. ★ Related article page 2

According to industry sources on the 15th, ZeroClick filed a patent lawsuit against Samsung and LG Electronics earlier this month in the Western District Court of Texas. There are two technologies related to the touch screen. The touch screen is a technology that enables users to work by simply placing their fingers on the screen without clicking with a mouse or pressing a button.

"The defendant (Samsung, LG Electronics) knows about the patent and continues to sell violation products," said ZeroClick.

In the collection, ZeroClick presented Samsung Electronics Galaxy S10 Plus and LG Electronics V30 as representative examples. However, the lawsuit product stated that it is “a touch screen smartphone and tablet using Google Android software (SW)”, and in fact, most smartphones and tablet products made by Samsung and LG Electronics were problematic.

The industry believes that zero-click lawsuits have been aimed at Samsung Electronics and LG Electronics by expanding the scope of the lawsuit when a favorable atmosphere is formed in the lawsuit against Apple, which has been held since 2015. Originally, ZeroClick was defeated by Apple in the Northern District Court of California, but the Court of Appeals immediately ruled out. Accordingly, it is expected that Samsung and LG Electronics' patent litigation direction will be decided according to the result of the lawsuit with Apple.

The global patent management and finance company (NPE) 'Zeroclick' touch screen patent litigation is proceeding not only for Samsung and LG Electronics but also for global companies such as Microsoft and Dell and Hewlett-Packard. The results of the lawsuit against Samsung and LG Electronics are expected to differ depending on the lawsuit against Apple that began in 2015.

Initially, the first target that ZeroClick aimed at was Apple. ZeroClick sued Apple's northern district court in September 2015 against Apple for infringing on a touchscreen patent. The district court raised Apple's hand, pointing out that the patent for ZeroClick was ambiguous.

But things changed when ZeroClick appealed to the Federal Court of Appeals in 2016, the following year. The Federal Court of Appeals pointed out that in June of last year, "the district courts relied only on Apple's claims." Eventually, the first trial was invalidated, and ZeroClick and Apple's litigation were put in place again.

After gaining significant results in patent litigation with Apple, ZeroClick's arrows began to turn to other companies. Samsung Electronics and LG Electronics have also been producing smartphones and tablets with touch screens, making them new suits.

In this regard, Samsung and LG Electronics are planning to respond to this lawsuit as the NPE's patent litigation is constantly being filed. LG Electronics said, "We will respond after careful analysis." Samsung Electronics did not reveal anything else.

With the increasing influence of domestic companies worldwide, patent litigation is also increasing. According to the Korea Intellectual Property Protection Agency, there are about 30 patent disputes every quarter in the United States involving domestic companies. Most patent litigation is concentrated on large companies that have grown into global companies such as Samsung and LG Electronics.

In particular, it is pointed out that Korean companies are hurting the global NPE's 'random' lawsuit. According to the data received from the Korean Intellectual Property Office by Democratic Peacemaker Bae-Sook Cho, member of the Small and Medium Venture Business Committee of the National Assembly for Trade, Industry and Energy, NPE has filed 590 cases in the past five years (2015-August 2019). Among them, 374 cases led to withdrawal, accounting for 63%.

This year, Samsung Electronics also filed a patent lawsuit against NPE 'Unilock' even before the release of its first foldable phone, 'Galaxy Fold' in April. In May, another NPE, “Needron,” asked the US International Trade Commission (ITC) to investigate Samsung Electronics, and in July, payment solutions company Dynamics filed another patent in the US ITC and filed a 337 Customs Act. Article 337 of the Customs Act is a provision that regulates unfair trade due to infringement of patents, trademarks, copyrights, etc. If a violation of the results occurs, the import of the product can be prohibited.