LG Chem sues SK Innovation for trade secrets theft
South Korean battery maker LG Chem and its US subsidiary are suing a competitor for alleged trade secrets theft.
In a press release yesterday, April 29, LG Chem announced that its US unit, LGCMI, has filed a lawsuit accusing South Korea-based SK Innovation of misappropriation of trade secrets by hiring its former employees.
LG Chem and LGCMI filed lawsuits with both the US International Trade Commission and the US District Court for the District of Delaware.
In its complaint, LG Chem alleged SK Innovation hired 77 of its “highly-skilled and experienced” employees from the lithium-ion battery division of LG Chem.
LG Chem said these employees include “dozens of engineers involved in the research and development, manufacturing and quality assurance” of its Li-ion battery, the world’s first commercial pouch-type battery for automobiles.
According to the lawsuit, these workers stole LG Chem’s trade secrets relating to the Li-ion battery to benefit SK innovation in the development of its own Li-ion batteries.
LG Chem said an internal audit of company communications showed the employees traded in LG Chem’s trade secrets to secure employment with SK Innovation.
“One of these employees inserted LG Chem’s key technical trade secret information regarding electrode manufacturing process on his CV for SK Innovation,” LG Chem alleged.
“Even worse, some of these employees downloaded 400 to 1,900 key technical documents from LG Chem’s data server before their move to SK Innovation,” it added.
LG Chem’s CEO, Hak Cheol Shin said SK Innovation has begun manufacturing and selling imitation Li-ion batteries to LC Chem’s customers across the world as “a direct consequence of theft”.
“SK Innovation’s blatant disregard for the rule of law damages the integrity of the free market and disrespects the innovators whose blood and sweat created a technology that’s proven vital to a greener world,” Shin said.
WIPR has contacted SK Innovation for comment.
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