F&P sues Korea's LG for breach of patent

By IRENE CHAPPLE

New Zealand manufacturer Fisher & Paykel is suing South Korea-based LG Electronics for allegedly copying its SmartDrive washing machine technology.

Fisher & Paykel alleges that the SmartDrive - a computerised system that allows the machine to adjust its washing actions according to the fabric type - was copied by the electronics giant and sold in the United States.

The company has filed for an injunction in a district court in Chicago.

Company spokesman Brian Nowell said their patent attorneys had compared the Fisher & Paykel system with that of LG Electronics and believed there was a case to answer.

Nowell said the company would be looking for an injunction and some form of punitive damages.

Fisher & Paykel managing director John Bongard said the company had "no intention of just standing back when we believe that innovations developed at a significant cost to us have been flagrantly copied by a competitor, with no respect for their patented status".

A case the company previously took against a competitor in Japan had resulted in royalty payments to Fisher & Paykel, a scenario Nowell said could also happen in the LG Electronics case.

LG Electronics has a month to respond to Fisher & Paykel's allegations.

Fisher & Paykel has battled with LG Electronics before, unsuccessfully alleging last year that it was involved in dumping washing machines in Australia.

However, an earlier crusade against dumping in New Zealand was more successful.

Fisher & Paykel had complained that importers of Korean goods - including LG Electronics - were selling unfairly discounted goods.

As a result the Government imposed penalties on the importers, adding several hundred dollars to the wholesale prices of some goods.

Bongard said Fisher & Paykel held 400 international patents on technology that differentiated its brand "and we are resolute about enforcing them".

He said that the SmartDrive patent protection would be in force for a further 10 years.

Fisher & Paykel Appliances shares closed up 4c yesterday at $10.30. The shares have gained 2.5 per cent this year.