Samsung Display will receive royalties for organic light-emitting diode (OLED) technology patents from China's BOE. The two companies agreed to end the dispute over "stealing OLED technology," which began in Dec. 2022, and to withdraw all lawsuits filed in the meantime. The three-year technology theft dispute is said to have wrapped up after BOE, which was facing an unfavorable ruling in the United States, proposed a settlement to Samsung Display.
The U.S. International Trade Commission (ITC) on the 18th (local time) announced it would terminate the proceedings in the "trade secret infringement" lawsuit between Samsung Display and BOE. The ITC said it would "suspend the investigation (Joint Motion to Stay) based on the parties' settlement and close the case." In Dec. 2022, Samsung Display filed a patent infringement complaint with the ITC against BOE and U.S. component wholesalers. In Oct. 2023, it also accused BOE of trade secret infringement.
Earlier, in July, the ITC issued an initial determination of infringement and announced that the final ruling would be made on the 17th of this month. In the initial determination, the ITC found that BOE and seven subsidiaries had infringed Samsung Display's trade secrets. Accordingly, it also preliminarily decided on a "limited exclusion order" (LEO) that would prevent BOE from selling OLED panels in the U.S. market for 14 years and 8 months.
Issuing the initial determination, the ITC said, "Even though Samsung Display's security measures were at an exceptional level, BOE acquired and used Samsung Display's trade secrets through improper means," and "caused substantial injury and a serious threat to Samsung Display." In response, it considered imposing U.S. export restrictions for the same period (14 years and 8 months) that Samsung Display spent developing core OLED technologies.
The procedures were concluded as the two companies reached a settlement ahead of the ITC's final ruling. According to the display industry, the settlement came at BOE's request. BOE supplies OLED panels to U.S. companies such as Apple. If the final ruling mirrored the initial determination, its U.S. export route would be blocked, dealing a heavy blow to revenue. Concerned about this, BOE decided to pay patent royalties for OLED technology to Samsung Display, bringing the dispute to a close. Samsung Display said, "The two companies agreed that fair technological competition is important for the development of the display industry and decided to withdraw all lawsuits between the parties."
While announcing the conclusion of this case, the ITC did not disclose the specifics of the settlement between the two companies. However, the industry expects BOE to pay Samsung Display patent royalties linked to its own OLED revenue. Samsung Display had sought 2 trillion won and BOE 500 billion won as the scope of royalty payments in negotiations, but they are said to have settled at around 1 trillion won. A Samsung Display official said, "We cannot disclose the specific terms of the settlement with BOE to the public."
In signing the settlement, the companies also agreed to withdraw all other patent and trade secret lawsuits beyond the cases concluded this time. Since the start of this year alone, Samsung Display has filed five intellectual property (IP) lawsuits against BOE in the United States, and BOE has filed one lawsuit.