TOKYO LG Electronics Inc. and Matsushita Electric Industrial Co. Ltd. have reached an agreement to settle their legal dispute over plasma display technologies.
Under the agreement, both companies agreed to cross license their plasma display technologies and rekindle a business relationship that had gone sour during the dispute, causing both companies to ban importing of each other's products.
Last November, Matsushita filed suit against LG Electronics in Japan for infringing its plasma display patents, claiming that there was no progress after more than a year's efforts of urging LG to negotiate a settlement of their patent infringement dispute. At the same time, Matsushita sought to suspend the import of LG's PDP products into Japan.
LG Electronics immediately retaliated by banning the import of Matsushita's PDP products into Korea.
The amicable agreement between both companies puts an end to the import bans and resumes cooperation in other business areas. Both agreed to form a Business Collaboration Committee to further explore potential collaboration areas.
Besides PDP patents, both companies agreed to cross license their PC and DVD specifications, though did not reveal further details.
Although LG and Panasonic rank among the top three suppliers of PDP panels, each company has a small share in the plasma display market in each other's country.