TRADE SECRET PROTECTION IS THE ENGINE OF THE GREEN ECONOMY
In April 2019, LG Chem, from which LG Energy Solution was later spun off, filed a pair of federal lawsuits against South Korean-based SK Innovation for misappropriation of trade secrets at the US International Trade Commission and the United States District Court of Delaware.
After a trial and an exhaustive two-year investigation, the US ITC ruled in February 2021 that SK Innovation had stolen LG Energy Solution's proprietary trade secrets and destroyed evidence to conceal that theft. The agency, whose mandate is to protect innovators from unfair trade practices, issued a ten-year exclusion order blocking the importation, domestic production, and sale of SK batteries that unlawfully relies on stolen technology.
Crucially, however, the ITC provided a four-year term in which SK Innovation can still produce batteries at its Georgia manufacturing facility. That exception ensures no interruption in America's electric vehicle market and provides times for the two companies to settle the dispute.
The decision is now subject to a 60-day review by President Joe Biden. Some have urged the president to veto the decision because of jobs SK has promised it would create in the manufacturing of its batteries. But that would set a dangerous precedent that would chill innovation in virtually every sector.