- Prosecutors took 9 people and two companies with illegal sales of Samsung technology.
- The group sold Samsung Display IP to a named Chinese company for around $ 13.8 million.
- Samsung is the market leader for OLED monitors for smartphones and tablets.
Samsung found itself on the receiving side of bad news today when Reuters reported that nine people and two companies were accused of allegedly selling Samsung's OLED display technology.
According to prosecutors in Suwon, South Korea, established the CEO of Samsung supplier Toptec Co. Ltd. and eight of its employees a shell company headed by the Chief Executive Officer's sister in law. This company will receive documents related to display panels from Samsung's Samsung Display subsidiary. The group of nine people then sold these documents and "3D lamination" technology to a named Chinese company between May and August this year for $ 15.5 billion (~ 13.8 million dollars).
Prosecutors also said that it took Samsung six years, 38 engineers and 150 billion dollars (~ 134 million dollars) to develop the intellectual property that the group allegedly leaked. See how integrated Samsung's success is for the South Korean economy, considering the country's IP-core core technology.
In a statement to Bloomberg Samsung Display said it was "shocked by the results of the prosecution from prosecutors, at a time when competitors intensified their technological rivalry." Samsung Display also said that it would keep an eye on the future trial.
In a separate statement sent to Reuters Toptec denied any misdemeanor.
"Our company has never provided Samsung Displays industrial technology or business secrets to a Chinese client. Our company will fully cooperate with litigation to find the truth in court."
Samsung has plenty of reason to keep its IP close to the chest. The company is the market leader in smartphone and tablet format OLED displays. Samsung also wants to lead the foldable OLED market, which recently shows the progress it has made.