Supply chain
JUSUNG Engineering (KOSDAQ036930) prevailed in the first and second-instance patent infringement lawsuit filed by Applied Materials
Press release

A struggle over patent infringement between JUSUNG Engineering Co., Ltd., and Applied Materials, the two biggest panel equipment suppliers in the world, has been going on for nearly 10 years. In 2011, the Taiwan Hsinchu District Court issued a first-instance judgment confirming that JUSUNG did not infringe on Applied Materials' patent. In response to appeal by Applied Materials, the Intellectual Property Court (IP Court) July 31, 2013 issued a second-instance judgment in which JUSUNG still prevailed. This case can be appealed with the Supreme Court.

Applied Materials occupied a large market share globally for sales of the asserted plasma-enhanced chemical vapor deposition system (PECVD). In view of the potential market in Taiwan for panel, JUSUNG tried to enter the market, and successfully sold its 5th generation of PECVD system to CHIMEI in 2003, which motivated other panel manufacturers to approach JUSUNG for its products. However, JUSUNG's success broke Applied Materials' long-standing dominance in the panel market, and represented a threatening signal to Applied Materials' market share. Consequently, Applied Materials asserted that JUSUNG's 5th generation of PECVD system infringed its patent and filed a petition for preliminary injunction order in 2003, preventing JUSUNG from selling its PECVD product to Taiwanese panel manufacturers, including CHIMEI. Applied Materials also filed a lawsuit in 2004 seeking NT$178,200,000 in compensation. The Hsinchu District Court dismissed Applied Materials' suit, and Applied Materials filed an appeal with the IP Court.

Regarding the second-instance judgment just issued by the IP court July 31, 2013, JUSUNG expressed its opinion that it again proves that the PECVD asserted by Applied Materials was solely invented and developed by JUSUNG, that JUSUNG has confidence that its products do not involve in any infringement, and that JUSUNG will defend itself against any attack against its business from competitors.

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