Sharp to pay LG Display 120 billion won in damages for breach of patent contract

LG Display revealed that Sharp issued a public statement saying that it has decided to accept the ruling of the Singapore International Arbitration Center (SIAC), that is, to pay 11.75 billion yen in compensation to LG Display. LG Display and Sharp submitted an arbitration application to SIAC on December 6, 2019 for breach of the patent license agreement.

According to BusinessKorea, in December 2013, the two companies signed a cross-licensing contract for mutual use of intellectual property rights in the display field, but LG Display believed that Sharp had violated the contract in specific areas and applied for arbitration. Since the details of the arbitration must be kept confidential, LG Display did not disclose specifically which part of the contract Sharp violated.

It is reported that LG Display initially demanded compensation of US$840 million. However, SIAC ruled that Sharp should pay LG Display US$95.19 million in compensation. This is about three times LG Display's operating profit of 38.3 billion won in the first quarter of 2022. The payment date of the compensation has not yet been determined.