TAIPEI, Taiwan - Largan Precision Co. yesterday confirmed reports that it is suing Samsung in a US court for infringing on six of its optical technology patents in its Galaxy Note 2, a handset released last year.
According to reports, following a decade in the business, Largan had struck a deal earlier this year with Samsung, agreeing to supply camera modules for the South Korean company's popular handsets and in the process taking in a high volume of orders in place of licensing fees.
The two companies, however, reportedly had a falling out after the deal, with Samsung demanding changes in Largan's manufacturing processes, which in turn hampered the latter's ability to deliver the modules.
Industry observers remarked that Largan's latest suit launched against the South Korean behemoth is part of a more aggressive campaign by the company initiated against competitors. The move is also indicative of the company's confidence in its command of technical know-how in the sector, in particular in camera modules of 8 megapixels and higher, said industry observers.
In response, Largan was compelled to seek alternative means in negotiations on patent litigation, according to reports. Largan stands to benefit from either securing further orders from Samsung, or in cash compensation for patent infringement in the event that differences between the companies are irreconcilable.
According to Largan, , the company had on numerous occasions since the beginning of this year submitted official notices and patent claims to Samsung indicating that it had infringed on six of its patents. Largan also claimed that the patent infringement case had damaged its corporate image.
Largan currently commands about 20 per cent of total global shipments of mobile phone camera modules, while its shares leads the TAIEX in terms of price.