Listed Manchester spinout company Nanoco is suing South Korean multinational electronics corporation LG Technologies.
Nanoco Group plc, headquartered in Runcorn, develops and manufactures cadmium-free quantum dots and other nanomaterials. These are used in monitors, TVs and infra-red sensors.
In 2023 it won $150m in a legal dispute with Samsung, settling on a no fault basis for the alleged infringement of the group’s intellectual property.
The firm, listed on the main market of the London Stock Exchange, has now filed a lawsuit against LG alleging that it has willfully infringed on a number of its patents related to the use of its cadmium-free quantum dots in its televisions.
Quantum dots are a nanomaterial 1,000 times smaller than a human hair that significantly enhance the colour and gamut visible to the human eye when light is shone through them. This technology usually contains cadmium, a toxic heavy metal.
Nanoco has pioneered the use of cadmium free quantum dots, developing and patenting a successful method for mass-producing cadmium free quantum dots through its ‘seeding’ methodology.
These patents were validated during Nanoco’s lawsuit against Samsung between 2020-2023, during which the US Patent Trials and Appeals Board ruled that Nanoco’s patents were valid.
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The claim of ‘willful’ infringement alleges that LG both infringed on Nanoco’s IP and was aware that it was doing so. In patent infringement cases in the US, the willful infringement of intellectual property, if proven, typically results in a multiplier on any damages awarded by a judge.
Nanoco has not attributed a value to its claims against LG.
“Nanoco proved the value and validity of its IP as part of the Samsung litigation process,” said Nanoco chairman Dr Jalal Bagherli. “At that time, we re-iterated our intent to aggressively pursue other potential infringers of our IP to ensure a fair outcome for shareholders of Nanoco.
“While there is potential for damages, litigation itself carries considerable inherent risk and the board must weigh the opportunity versus the cost. In this instance, we believe the potential return to be worth the costs of commencing litigation.
“Nanoco continues to remain open to finding a mutually acceptable commercial solution, but the action is appropriate to take at this time in the best interest of the Company and its shareholders, to defend one of our core assets.”
An LG spokesperson said: “As this case remains ongoing it would be inappropriate to comment further at this stage.”
Nanoco recently revealed plans to ramp up its commercial engagement as it transitions to scaled production.
It has made several organisational changes as it looks to scale the commercialisation of its technology.
The firm said last year that it was cutting jobs in an attempt to preserve cash as it explores a sale via financial advisor CDX Advisors, but added that it has considerable financial resources due to the Samsung settlement.