New Development in PS3 Import Ban: LG to pay €130,000

There have been new developments in the brewing Sony vs LG legal conflict, but the dispute is hardly over. To give a brief overview, LG is suing Sony for alleged patent infringement on their Blu-ray technology. Sony, in turn, is counter suing LG for alleged infringement of their patents in the production of smartphones. Previously, LG won an injunction against Sony which resulted in all incoming Playstation 3 units being confiscated by the authorities, culminating in more than 300,000 PS3 units (valued at about $43 million) sitting in warehouses. Recently the Dutch courts have seen this issue and delivered a verdict.

The grueling legal battle is just getting started

The court ruled in favor of Sony, freeing the confiscated PS3s and levying a €130,000 fine to be paid to Sony by LG. Worse for LG, for every day they do not pay the fine it increases by €200,000. While this is nice for Sony, the lawsuit is hardly over. LG still demands a royalty payment of between $2.50 and $2.55 for each Blu-ray device Sony has sold. While two dollars and fifty cents is hardly a fortune, when you consider that there are already some 47 million PS3 units sold globally, and that the PS3 is not the only thing that Sony sells that uses Blu-ray, that figure grows quite a bit. LG estimates that Sony already owes it some $180 million, and it intends to collect on future sales as well. In a nutshell, if LG ends up winning this lawsuit, the first session of which has been scheduled for November 18th, it could be a very big blow for Sony.

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