Hyosung Advanced Materials and Kolon Industries, two leading South Korean chemical and textile manufacturing companies, are embroiled in a patent infringement lawsuit in the U.S. The conflict revolves around the alleged infringement of core technologies related to next-generation tire cords for electric vehicles, a flagship product for both companies in the tire cord market.
Kolon Industries filed a lawsuit against Hyosung Advanced Materials and Hyosung USA for patent infringement in the U.S. District Court for the Central District of California late last month, according to both companies on Mar. 12. Kolon claims that Hyosung infringed on its patent for the Hybrid Tire Cord (HTC), a blend of aramid fibers and nylon known as ‘super fibers.’ The specific sum sought in damages has not been disclosed.
Tire cord fabrics are designed to keep tires in shape and support vehicle weight, significantly impacting tire performance. The HTC boasts superior performance in terms of support compared to the mainstream polyester (PET) tire cord. Although PET cords dominate the tire cord market, aramid is increasingly being used in tire cords for electric vehicles. This trend is driven by the electric vehicle sector’s need for tires that can support the heavy weight of batteries, which can weigh up to several hundred kilograms.
Kolon Industries asserts that their HTC product is expected to play a crucial role in catching up with Hyosung Advanced Materials’ market share in the tire cord market. Hyosung Advanced Materials dominates the global tire cord market with a 51% share, with Kolon Industries trailing at 15%.
“Our patent rights, acquired through decades of research and development, have been infringed [by Hyosung] without permission,” said Kolon Industries. “The lawsuit is also a protective measure as North America is the largest tire cord market and a critical focus for our future endeavors.”
Kolon is reportedly trying to reach a conclusion as soon as possible through the discovery process, which requires both parties in patent lawsuits to disclose relevant information and evidence before trial. Given that the technology is primarily applied to tires for electric vehicles, Kolon’s strategy aims at securing patent recognition in North America, a key market for this technology.
Korea does not have a discovery process, making the U.S. an attractive venue for resolving patent disputes. In patent disputes, gathering evidence against the opposing party is difficult as most of the contested information is handled in laboratories or manufacturing sites. This challenge renders the discovery system particularly valuable. The electric vehicle battery technology dispute between LG Chem and SK Innovation was also settled ahead of schedule through the discovery system in the U.S.
Hyosung has stated that it has yet to be formally served with the lawsuit and is awaiting specific details, including the amount of the claim. The company plans to release further information within a month once the details are confirmed.
