Guardian Industries Corp. and Honeywell International Inc., have filed suits in a US District Court in Delaware against dozens of electronics companies worldwide for allegedly infringing their intelle…
Guardian Industries Corp. and Honeywell International Inc., have filed suits in a US District Court in Delaware against dozens of electronics companies worldwide for allegedly infringing their intellectual property relating to LCD technology. Flat glass maker Guardian Industries and Honeywell, a manufacturer of weapons systems, are attempting to recoup royalties on their patents. Neither firm is active in LCD production. Taiwan and South Korea are the two main centers of LCD production. The lawsuits target the LCD industry directly, but also assert claims against companies that incorporate LCDs into final electronic products. Jin Kim, the director LCD market research for research firm DisplaySearch, said the LCD business avoided patent lawsuits in its earlier years, but has attracted litigants as the business has boomed into a USD 40 billion market. “When you get big, and the industry becomes somewhat popular, there“s always lawyers or companies willing to suddenly develop a way to be a part of it,” he said. Privately held Guardian, based in Auburn Hills, Michigan, asserts rights on four patents related to the design and manufacturing of LCD displays. The patents cover technologies that affect the viewing zone and high-contrast features of LCD displays, according to court papers. In January 2005, the company sued 14 companies, including PC makers Dell Inc., Gateway Inc. and Acer Inc.; Taiwanese computer hardware makers BenQ Corp. and Lite-On Technology Corp.; and Taiwan-based LCD manufacturers AU Optronics Corp., Chunghwa Picture Tubes Ltd. and Quanta Display Inc. Dell has filed court papers denying infringement and asking a judge to rule in its favor. Honeywell, which filed a suit in October 2004 against 34 electronics companies including Apple Computer Inc., Sony Ericsson Mobile Communications, and Japanese Fujitsu Ltd, has pointed to three large LCD makers, LG.Philips LCD , Samsung Electronics Co. Ltd. , and Japan“s NEC Electronics that it says have agreed to sign license agreements for the technology. Jin, the DisplaySearch analyst, said LCD makers have been reluctant to use lawsuits against competitors, in part because there are so many patents covering the technology that any plaintiff could easily be countersued. Honeywell and Guardian, neither known for LCD production, could be shielded from countersuits, he said, since they do not deal directly in the market. “There is kind of a symbiotic relationship among all the LCD suppliers,” he said. “That“s why it has traditionally been not much of a factor.”