Taiwanese contract computer manufacturer Quanta and other
computer builders in Taiwan are suing LG Electronics over its
assertion of patent rights. They hope to overturn an appeals court
decision that they say could open up manufacturers to new
suits.
They claim that LG is asserting its patent rights against every
company in a manufacturing chain to produce a computer.
The companies make computers under contract to major US
computing brands such as Hewlett-Packard, Dell and Gateway. Those
companies have filed supporting documents to the court backing
Quanta.
LG sued Quanta and others in 2000 alleging that they infringed
computer chip patents held by it.
The technology was part of a licensing deal with Intel which
allowed that company to use LG technology on its chips. When Intel
sold those chips to Quanta LG said that its licence agreement did
not extend to the computer manufacturers.
A California District Court backed the Taiwanese companies, but
a federal appeals court overturned that decision, finding in favour
of LG. The Supreme Court has now agreed to look into the case.
The Supreme Court has shown close interest in patent matters in
recent months, ruling recently on 'obviousness' in patent
applications in a case between KSR and Teleflex over a car
accelerator pedal.
The Court also recently ruled that Microsoft cannot be punished
in the US for patent infringement that takes place on foreign soil.
The Supreme Court's recent rulings have been seen as generally
reining in the scope of patents.
