Sharp sues Samsung for LCD patent infringement

NEW YORK/TOKYO (Reuters) - Sharp Corp. said on Monday it filed a U.S. lawsuit accusing Samsung Electronics Co. Ltd. of infringing Sharp's LCD patents, the latest in a series of legal tussles among Asian technology companies.

The suit comes at a time when makers of liquid crystal display (LCD) TVs, such as Sharp, Samsung and Sony Corp., battle fierce price competition and shrinking margins.

Sharp said it filed the suit in the Court for the Eastern District of Texas and was seeking compensation and the prohibition of sales of products infringing five of its LCD patents including one that relates to technology used to enhance display quality.

The infringing products include Samsung televisions and monitors and mobile phones that include Samsung LCD modules, according to Sharp, which is asking for a jury trial.

Sharp declined to comment on how much monetary compensation it is seeking.

The world's third-largest LCD TV maker behind Samsung and Sony said last week it would spend 380 billion yen ($3.20 billion) to build the world's largest LCD panel plant in Japan, in an effort to win back the No.1 spot it once held.

"We have been in talks with Samsung, but it appears difficult to solve the matter through negotiations," Sharp spokeswoman Miyuki Nakayama said.

"So, our primary purpose is to move the situation forward by filing a lawsuit."

Samsung representative Chris Goodhart said the company does not comment on pending litigation.

Sharp, which in June sued Taiwan's HannStar Display Corp. for alleged violations of four LCD patents, said this is the first time that it has filed a lawsuit against Samsung.

Shares in Sharp were up 1.2 percent at 2,070 yen in morning trade, outperforming the Tokyo stock market's electrical machinery index IELEC, which was virtually unchanged.

In South Korea, Samsung shares were up 0.9 percent at 589,000 won, while the benchmark Korea Composite Stock Price Index rose 0.91 percent.

($1=118.86 Yen)