[Edaily Reporter Song Jae-min] LG Energy Solution has settled a patent dispute with Chinese battery manufacturer Xinwangda by signing a patent licensing agreement.

According to industry sources on the 11th, LG Energy Solution and Tulip Innovation—which operates Panasonic’s battery patent licensing program—have signed a patent licensing agreement with Xinwangda. Consequently, all related legal proceedings underway in Germany, China, and South Korea will be withdrawn.

In a joint statement, the two companies said, “We determined that resolving the ongoing global legal disputes through the signing of this license agreement was the best choice for both parties, as well as for our customers and stakeholders,” adding, “This resolves the uncertainty and cost burden associated with continued litigation.”

For the past two years, LG Energy Solution has been pursuing patent litigation against Shinwangda, alleging infringement of its core lithium-ion battery patents. In German courts, LG Energy Solution secured a sales ban and other injunctions after the court recognized patent infringement related to electrode assembly structures, and has won a total of three cases, including other patent lawsuits.

Regarding this agreement, LG Energy Solution stated, “This is a case that reaffirms the principle that companies dedicated to technological innovation should receive fair compensation,” adding, “As an ‘Original Innovator’ that has driven the growth of the battery industry, we will take the lead in fostering a healthy industrial ecosystem where all companies can compete fairly.”