Pair agree to not file lawsuits against each other for 10 years
LG Energy Solution and SK Innovation have settled their battery lawsuit, the companies announced on Sunday.
The pair’s settlement comes a day before the deadline for US President Joe Biden to exercise his rights to veto a ruling made by the International Trade Commission in February.
The commission had ordered a 10-year import ban against SK Innovation in its decision over the pair’s lawsuit over trade secret.
Under the terms of their settlement, SK will pay 2 trillion won in compensation __ 1 trillion won in cash and 1 trillion won in royalties __ to LG.
The pair also agreed to withdraw all lawsuits between each other since April 2019.
SK and LG will also agreed to not file lawsuits between each other for the next ten years.
SK will be able to operate its factory in state of Georgia in the US as planned.
The two South Korean firms’ dispute started when LG Energy Solution, then LG Chem, filed a lawsuit against SK Innovation for allegedly stealing its trade secrets in a court in Delaware. Their dispute escalated after SK counter sued LG for patent infringements.