Samsung and LG have called off a daft and expensive legal war which was sparked by a set of damaged washing machines.
The two companies said in a joint statement they would withdraw all complaints against each other and ask legal authorities to refrain from meting out harsh punishments in cases going on.
LG appliances chief Jo Seong-jin was indicted by Seoul prosecutors on a charge of deliberately damaging Samsung washing machines at a retail store in Germany last September. Samsung asked for a criminal punishment. Prosecutors have not declared what penalty they would seek against Jo.
The pair were creating much merriment as they argued over how many washers were damaged by Jo and other employees. LG published surveillance video footage to YouTube in an attempt to prove Jo’s innocence, and Samsung sent in its forensic teams to prove the video was heavily doctored.
“Both sides have agreed to avoid legal action and resolve any future conflicts or disputes through dialogue and mutual agreement,” the companies said.
It is not clear if this is the legal equivalent of agreeing to step outside or to have a dual between executives. We just hope that if there are duals that they are televised when Game of Thrones is finished.
The agreement extends to Samsung Display and LG Display. Samsung Display employees were indicted in February on charges of stealing organic light-emitting diode (OLED) display panel technology from LG Display. Samsung Display has said the technology was widely known in the industry and that the indictment was excessive.
The Seoul Central District Prosecutors’ office declined to comment on the case against the LG Electronics appliances chief, and the Suwon District Prosecutors’ Office declined to comment regarding its case against the Samsung Display employees
If it did it would probably be something like “big multinational companies will be big multinational companies.”
The competition between LG and Samsung appears to have taken an ugly turn with the arrest of a senior LG manager on a charge of deliberately damaging Samsung products.
An LG Electronics spokeswoman confirmed on Sunday that Jo Seong-jin and two other employees have been indicted by local prosecutors.
The impending court case continues a run of disputes between the cross-town rivals. The two companies compete on several fronts, including televisions and home appliances, and have quarrelled publicly.
Samsung filed an official complaint in September, accusing Jo and other LG employees of deliberately damaging Samsung washers at retail stores in Germany. The police investigated and found that it was all true.
LG had agreed to pay for what it called “accidental damage” to four machines after mediation by German authorities. However it seemed that it couldn’t resist taking a pot shot at the quality of its rival’s products at the same time and Samsung lashed back at slanderous claims and filed an official complaint.
Ham Yoon-keun, a lawyer who will be defending Jo in court, said in a statement provided by LG said that it was questionable whether there is sufficient evidence to prove that the president of a global company deliberately destroyed the machines where employees of the competing company were present.
Sources familiar with the matter told Reuters that representatives of Samsung Electronics and LG Electronics met recently in an unsuccessful attempt at mediation by prosecutors.
Meanwhile Samsung Display admitted that four of its employees were indicted on Friday on charges of stealing organic light-emitting diode (OLED) display panel technology from LG Display.
LG sniffed that the information is one of LG Display’s business secrets, Samsung Display’s such action should obviously be considered as a theft.
Samsung Display said the indictment was excessive, arguing that the technology in question was already widely known.
The war between Samsung and Nvidia has escalated and handbags are being distributed to the troops.
Samsung says that Nvidia has infringed several of its semiconductor-related patents and for making false claims about its products. This is a counter-suit following Nvidia’s lawsuit against the Korean company in September.
Samsung, which filed its lawsuit on Monday, is seeking damages for deliberate infringement of several technical patents, including a few that govern the way semiconductors buffer and use data.
Samsung said that Nvidia is guilty of false advertising when it says its “Shield” tablet sports the world’s fastest mobile processor, the Tegra. Samsung cites benchmarking studies performed by researchers at Primate Labs as proving that claim false.
Nvidia said it would review and respond to these new claims against it, and looked forward to presenting its case on how Nvidia GPU patents are being used without a licence.
Nvidia also pointed to a benchmarking study that supported its claim that the Tegra was the fastest mobile processor on the market.
Everyone knows that industry claims that “our chip is faster because we use x benchmark” always goes nowhere. It will be interesting to see what a court will make of them.
Samsung does not expect a price war to break out in the semiconductor industry next year even though it is ramping up capacity.
CEO Kwon Oh-hyun said that he will have to “wait and see how things will go next year, but there definitely will not be any game of chicken”,
Memory chip makers have reported strong profits this year thanks to better-than-expected demand for PCs and servers. Most analysts believe industry conditions will remain favourable in 2015.
But Samsung’s plan to invest $14.67 billion in a new South Korea chip plant stoked concerns about the industry’s profit outlook. Some investors worry that the firm could ramp up supply and undercut prices to squeeze Hynix and Micron’s bottom line.
Cooler heads have pointed out that Samsung’s plant will not begin production until 2017. They say margins in the memory business are important to Samsung, given the mobile division’s falling smartphone profits.