Samsung Display secures major legal win; Korean OLED makers expected to benefit in the long run
Samsung Display has effectively won its trade secret dispute against Chinese display giant BOE at the US International Trade Commission (ITC), leading to a sweeping ban on BOE’s OLED business activities in the United States for nearly 15 years. The ruling is seen as a significant boost for Korean OLED manufacturers amid intensifying competition from Chinese firms.
According to industry sources on the 13th, the ITC’s preliminary ruling on July 11 found that “Samsung Display had implemented exceptional security measures, yet BOE unlawfully acquired and used its trade secrets,” causing “serious threats and substantial harm” to the Korean company.
Samsung Display had filed its complaint on October 31, 2023, accusing BOE of misappropriating confidential OLED technology. While the final ruling is scheduled for November, industry observers say the preliminary findings make a reversal highly unlikely.
The ITC issued a Limited Exclusion Order (LEO) preventing BOE from importing OLED panels into the US for 14 years and 8 months — the same period the commission determined it took Samsung Display to develop its core OLED technologies. Unusually, the duration was calculated by adding the development timelines of multiple individual trade secrets.
The order also prohibits BOE’s US-based subsidiaries and affiliates from engaging in any marketing, sales, advertising, or inventory activities in the country. However, OLED panels supplied by BOE as part of finished products, such as Apple iPhones, are excluded from the ban.
As of Q2 this year, BOE held a 22.7% share in the small OLED market for iPhones. While the immediate market impact may be limited, industry experts believe Korean panel makers like Samsung Display and LG Display stand to gain over the longer term.
“Global device makers may now be more hesitant to adopt Chinese OLED panels,” said one display industry official. “Over time, this will strengthen the presence of Korean companies in the US OLED market.”