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July 4, 2007

LG sues world's largest laptop maker

Quanta targeted over DVD patents

Dan Nystedt

LG Electronics has filed a lawsuit against the world's largest contract manufacturer of laptop PCs over the infringement of four patents related to DVD technology, the company said today.

The South Korean electronics maker is seeking an injunction against Taiwan's Quanta Computer to put a stop to its use of the technology, as well as cash compensation. The suit was filed in US District Court, Western District of Wisconsin on July 3, LG said.

LG alleged that Quanta has been using the infringing technology to produce laptop PCs that have been supplied to US computer vendors. Quanta counts HP, Dell and a number of other PC vendors among its customers.

The two companies have another outstanding lawsuit in the US on which LG expects a decision in the first half of 2008. LG sued Quanta in the US District Court of Northern California in 2000 over the alleged infringement of PC-related patents. Originally, the trial court decided in favour of Quanta, but the US Court of Appeals overturned the verdict. LG said it expects the ruling in this case to be in its favour.

Quanta declined to immediately comment on the lawsuit.

LG holds 5,000 international patents on DVD technologies, it said.

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