Earlier this week, news agencies erroneously reported that a U.S. Judge had dismissed a lawsuit filed by LPL against Chunghwa and Tatung involving patent infringement. However, while certain other claims were dismissed, the trial in which LPL is seeking $80 million for damages is underway and expected to last until early November.

LPL is asserting that Chunghwa and Tatung willfully infringed LPL’s semiconductor patents. LPL’s patents at issue relate to the process for manufacturing liquid crystal displays (LCDs). LPL is seeking in excess of US $80 million in damages as well as an order enjoining Chunghwa and Tatung products from entering the United States.

“Chunghwa and Tatung have been found to have willfully infringed another LCD patent of LPL,” said Gaspare J. Bono, partner with McKenna Long & Aldridge LLP. “In July, a jury returned a $52.4 million verdict in favor of LPL for that infringement. Based upon the jury’s finding of willful infringement, we have asked the Court for enhanced damages as well as a permanent injunction.”

In early 2004, CPT filed counter claims and a counter suit against LPL, claiming that CPT owned LPL’s side-mounting patents based on CPT’s purchase of long expired rights of now defunct Digital Equipment Corporation. The sidemount technology is a method of mounting liquid crystal (LCD) displays that allows system manufacturers to fit larger LCD displays in their products.

Prior to this trial, the Court dismissed CPT’s claim for inventorship of the sidemount technology, holding that CPT has no right to assert claims that LPL did not invent the sidemount technology. This ruling puts an end to CPT’s ability to challenge LPL’s sidemount patents. The Court also dismissed Chunghwa’s counterclaim that LPL improperly interfered with Chunghwa’s business by alerting Chunghwa’s customers of Chunghwa’s infringement. The Court’s ruling was based upon LPL’s recent arbitration victory against Chunghwa in a proceeding held last November before the American Arbitration Association when the arbitration panel rejected the claims of ownership by Chunghwa to the sidemount technology.

The Court also ruled that LPL does not have standing to assert its side- mounting patents against the defendants in this lawsuit. LPL respectfully disagrees with the Court’s ruling and plans to appeal.