Celgard Files Patent Infringement Lawsuit Against LG Chem, Ltd.
January 30 2014 - 4:15PM
Celgard, LLC ("Celgard"), a subsidiary of Polypore International,
Inc. (NYSE:PPO), announced today that it has filed a complaint in
the U.S. District Court of the Western District of North Carolina
against LG Chem, Ltd. and LG Chem America, Inc. (collectively
"LG").
The complaint alleges that LG has infringed Celgard's United
States Patent No. 6,432,586 issued for an invention entitled
"Separator for a High Energy Rechargeable Lithium Battery." The
patent in the lawsuit covers ceramic composite layer lithium-ion
battery separators first developed by Celgard for high-energy
rechargeable lithium-ion batteries. This lawsuit has been filed
following a lengthy period of unsuccessful discussions with LG
regarding various business terms of its relationship with Celgard,
including infringement of Celgard's patent. Celgard is represented
by the law firm Kilpatrick Townsend & Stockton, LLP.
"Celgard has a long history of innovation in lithium-ion battery
separators and is a proven world leader in this technology. We
value long-term customer relationships, and we are interested in
partnerships that reflect the value of our products in applications
such as electric drive vehicles ("EDVs"), where exceptional safety
and performance characteristics are critical," said Robert B. Toth,
President and Chief Executive Officer of Polypore. "We supported LG
for years under a formalized memorandum of understanding that was
intended to result in a long-term supply agreement, investing
substantial capital at their request and developing and qualifying
high quality products with unique attributes. Unfortunately, after
a long period of support and discussions, LG's recent approach and
demands were simply unacceptable.
"Legal action is not a decision we take lightly. However, LG's
recent approach in both consumer electronics and EDV applications
leaves us with no choice," added Toth. "While LG has not confirmed
this in writing to us as we requested, representatives of LG have
verbally stated that they are attempting to qualify alternate
sources of supply to Celgard separator—an action we believe
constitutes further infringement of our coating patents. We are
taking this action on behalf of our company and our shareholders to
safeguard our assets, and we will continue to take appropriate
steps to protect our intellectual property."
During the fourth quarter of 2013, Polypore recorded no revenues
from LG and expects to report fourth quarter sales for the
Electronics and EDVs segment to be in the low- to mid-$30 million
range.
Polypore expects to announce its fourth quarter and full year
2013 financial results on February 24, 2014 after market close and
will take questions regarding current business matters at that
time.
About Polypore International, Inc.
Polypore International, Inc. is a global high technology
filtration company specializing in microporous membranes.
Polypore's flat sheet and hollow fiber membranes are used in
specialized applications that require the removal or separation of
various materials from liquids, primarily in the ultrafiltration
and microfiltration markets. Based in Charlotte, NC, Polypore
International, Inc. is a market leader with manufacturing
facilities or sales offices in nine countries serving six
continents. See www.polypore.net.
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CONTACT: Polypore International, Inc.
Investor Relations
Paul Clegg
(704) 587-8886
investorrelations@polypore.net