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Chimei Innolux sues Sony for patent infringement.

Taipei, July 8, 2010 (CENS) -- Chimei Innolux Corp., a major flat panel display (FPD) manufacturer in Taiwan, announced yesterday (July 7) that it has sued Sony for patent infringement in both the U.S. and China, demanding compensation for its loss and injunction against the sales of Sony's related products.

The law suits were filed with the United States District Court for the Western District of Arkansas and the second medium people's court in Beijing. In addition to compensation, Chimei Innolux also requested the U.S. court to impose injunction against the sales of several hit products of Sony in the U.S., including BRAVIA TV, Cybershot digital camera, and digital photo frame.

The move is a countercharge against Sony, which filed complaint with the U.S. International Trade Commission (ITC) against Innolux Display, forerunner of Chimei Innolux, and several other firms for infringing 10 of its patents on March 18, when the merger between Innolux and Chi Mei Optoelectronics took effect. Sony also asked the ITC to forbid shipment of related products to the U.S.

The mutual charge complicates the business relationship between Sony and Hon Hai, parent firm of Chimei Innoloux, as Hon Hai is a major contract manufacturer for several products of Sony, including game consoles and notebook PC. In addition, Sony is a major target client of Chimei Innolux in its effort to push its shipment of LCD TV.

Industry insiders noted that Chimei Innolux might intend to force Sony to cut the licensing fee for some of its patents and even increase its orders for Chimei Innolux, adding that mutual charge for patent infringement between suppliers and clients mostly ended with settlement and mutual licensing.

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Author:Liu, Philip
Publication:The Taiwan Economic News
Article Type:Brief article
Geographic Code:9TAIW
Date:Jul 8, 2010
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