A lawsuit in the US is seeking harsh penalties against LG.

A firm called AU Optronics has filed suit in a US district court alleging patent infringement by the company regarding LCD screen construction. The suit is asking that the US bar LG from shipping LCD screens to the country until a licensing deal can be made.

Given the sizable legal resources LG possesses, it's not very likely that the company sees itself blacklisted in the US, but this can't be sitting well with the company regardless. LG was among the companies named and shamed in a recent price fixing scandal, and the latest news has sent the company's stock shares tumbling.

With the bad press piling up, LG may want to look into overhauling its corporate image. Regardless of the outcome in this patent case, the company is really starting to look bad in its market practices.

The news also comes amidst what should be an otherwise upbeat time for LG. The company has struck a deal with the makers of Iron Man 2 to offer a new line of smartphones based on those used in the move. The limited edition Android phones will sport a slide-out keyboard, touch-screen interface and special downloadable content which will include bonus movie materials.

04 May 2010