Seoul: Samsung Display Co. has virtually secured a victory in a U.S. lawsuit against BOE Technology Group Co., following a decision by Washington's trade watchdog to impose a near 15-year import ban on the Chinese company's organic light-emitting diode (OLED) panels, sources revealed on Wednesday.
According to Yonhap News Agency, the U.S. International Trade Commission (ITC) issued a preliminary ruling to prohibit imports of BOE's OLED panels for a duration of 14 years and eight months under a "limited exclusion order." This decision comes nearly two years after Samsung Display initiated the lawsuit in October 2023.
While the final decision is anticipated in November, industry observers believe the preliminary ruling is unlikely to be reversed, as it confirms BOE's infringement on Samsung Display's trade secrets. The ITC previously stated that Samsung Display had demonstrated that BOE had violated at least one of its protectable trade secrets, adding that the Chinese firm had "injured and threatens to substantially injure a domestic industry" in the U.S.
Industry analysts, however, noted that the ruling is not expected to result in a significant decline in BOE's market share within the OLED sector. This is because finished products utilizing its panels, such as Apple's iPhones, are not affected by the import restriction.
"While the verdict may not significantly alter the OLED market landscape, it could still pose challenges for finished products containing Chinese OLED panels," an industry official commented. "In the long term, South Korean companies might gain advantages in the U.S. OLED market."