Sony Sues Rival LG Electronics, Demands to Stop Sales of LG Phones in the U.S.

Sony Wants to Block Sales of LG Cell Phones in the U.S.

by Anton Shilov
12/30/2010 | 02:36 PM

Sony Corp. filed a complaint with the U.S. International Trade Commission on Wednesday and accused LG Electronics of infringement of its modem-related patents. The company demands the ITC to ban sales of LG cell phones in the country. Sony also sued LG in a Los Angeles, California court.

 

The patents in the suit involve audio and microphone devices in cell phones, caller ID technology and transmission power, reports Reuters news-agency. Sony reportedly said the patent infringement relates to more than 10 phones including the Encore, LG Accolade, Neon, Quantum, Rumor Touch and others.

“Sony has been keen to protect its patents. U.S. is an important market for Sony as its mobile phone venture with Ericsson is trying to win a bigger share," Yuji Fujimori, a Tokyo-based analyst at Barclays Capital, told Bloomberg news-agency.

Even though Sony would be glad to stop sales of phones by LG Electronics in the U.S. to clear the road for Sony Ericsson and consequently increase its sales of components to the joint venture, it is highly unlikely that the company manages to actually achieve its goal. As a result, a realistic target could be a cross-licensing agreement with LG Electronics or another type of a deal that would allow Sony to obtain certain innovations or business contracts.

LG did not comment on the news-story due to policy not to comment on ongoing litigation.