Manchester University spinout Nanoco Group plc has settled its legal action with South Korean multinational electronics corporation LG Technologies.
The listed Runcorn firm develops and manufactures cadmium-free quantum dots and other nanomaterials. These are used in monitors, TVs and infra-red sensors.
In 2023 it won $150 million in a legal dispute with Samsung, settling on a no fault basis for the alleged infringement of the group’s intellectual property. In February this year it commenced litigation against another multinational electronics corporation in LG Technologies, alleging that it has willfully infringed on a number of its patents in production of its televisions.
This morning it said the gross amount agreed to be paid by LG to Nanoco is $5m. Litigation costs incurred by Nanoco to date total $600,000.
Its share price has risen almost 6% in the first hour of trading this morning following the news. However it remains 6% down over the last five days following the publication of its annual results. It is also continuing to explore a sale of its trading business.
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.
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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.
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. However the award revealed today is far lower than that won from Samsung.
In August Nanoco said CTO Dr Nigel Pickett, who founded the firm 24 years ago, would retire early next year.
Dr Ombretta Masala, who has worked for Nanoco for 18 years, directly reporting into Dr Pickett, will become director of technology but not join the board.
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