South Korean tech giants Samsung Electronics Co. and LG Electronics Inc. along with other multinational appliance names have been sued in the United States by Chinese home appliance maker Haier Group over alleged violation of antitrust rules involving digital-television license.

According to industry and media sources on Thursday, Chinese electronics giant Haier Group filed a federal antitrust suit against five electronics makers - Samsung, LG, Panasonic, Philips, and Zenith in the U.S. In the lawsuit, Haier America Trading, Haier’s U.S. subsidiary accused the five inflated costs related to the Advanced Television Systems Committee (ATSC) standards.

The ATSC standards govern digital television transmission over terrestrial, cable, and satellite networks. It is adopted in Korea and the U.S., and deemed faster and more compatible than the Europe’s DVB and Japan’s ISDB systems.

Haier accused the five electronics makers hampered fair competition through secrete deals with MPEG LA, LLC, the world’s biggest intellectual property rights manager, and the Trustees of Columbia University. “Haier has approached licensors LG, Samsung, and Thomson Licensing about licensing necessary patents for its TV tuners; all have refused to negotiate individually and referred Haier back to MPEG LA,” stated the complaint filed by Haier.

The Chinese said it acknowledged the needs for industry’s general practice of setting uniform standards but argued the process of setting the standards should follow the “fair, reasonable and nondiscriminatory,” or the so-called FRAN terms.

“MPEG LA along with LG, Samsung, Philips, Panasonic and other licensors have conspired in restraint of trade to affect, raise, fix, maintain, and stabilize prices in the downstream product market by demanding an excessive, non-FRAND royalty rate for the ATSC standard,” stated the complaint.

Last year, Haier acquired the household appliance business of U.S.-based General Electric and has launched efforts to expand its presence in the global market. It could pick more court fights with bigger Korean rivals, industry watchers predicted.

At 3:04 p.m. on Thursday, shares of Samsung Electronics were up 0.34 percent at 2,382,000 won ($2,112.83), and those of LG Electronics were down 0.13 percent at 77,400 won.

By Lee Dong-in

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