Audi and BMW in dispute with LG
Altogether, it is claimed that up to seven LED patents have been infringed.
This will come as unwelcoming news for both BMW and Audi. LG are now asking for the sales of Audi and BMW cars to come to a halt altogether, with a complete ban on anyone being able to purchase the vehicles after their law suit was filed in South Korea. Any action taken by the courts will come as a huge blow to both companies.
In the law suit the company details that Osram’s lighting products are being used by the German luxury car makers which as a result infringe LG’s patents.
South Korea only represents 1% of Audi and BMW’s global car sales. European models are now set to expand in the country however thanks to a trading deal secured with the European Union earlier in the summer. Would the move severely affect the South Korean automotive industry?
BMW are the most imported vehicle in the country, accounting for a respectable 16,579 sales between January and August of this year. This represents a 62% increase from 1 year ago. That equates to them owning 24% of the imported car market in the country. Since the Japanese earthquake, BMW have managed to gain a strong foothold in the company.
Audi have also made significant progress in the South Korean car market. They sold 6,668 cars from January to August, equating to the company owning 9.6% of the imported car market.
The sudden growth from both companies represents a better performance compared to current domestic models.
LG have also made another request to ban imported LED products that were made by Osram. LG are concerned that all of these infringements which seem to be occurring are affecting the fast growing LED lighting industry.
What was the effect on the stock market following this recent news? LG shares fell by 0.7%. BMW and Audi shares rose by 1.5% and 0.9% respectively.
BMW, Audi as well as Osram have declined to comment on proceedings so far. They said they would need to study the matters in further detail in order. Audi have said they haven’t as of yet received any notification of the impending lawsuit. There is certainly a lot of bother in the automotive industry at the moment concerning LED lights.