Confiscations ordered after Asian electronics giant LG wins preliminary injunction against Sony in acrimonious patent battle
European customs officers have been ordered to seize shipments of Playstation 3s after LG won a preliminary injunction against Sony in an acrimonious patent battle between the two Asian electronics giants.
The
ruling by the civil court of justice in the Hague means that all new
PS3s have to be confiscated as they are imported into the UK and the
rest of Europe for at least 10 days.
If the injunction was
extended it could mean consoles disappearing from high street shelves.
It is understood that Sony and computer games retailers typically have about two to three weeks' worth of PS3s in stock across the continent.
Tens
of thousands of PS3s were seized by customs officers last week in the
Netherlands, the Guardian has learnt, in a dispute that centres on
Sony's allegedly infringing use of Blu-ray technology belonging to LG.
Sony,
which imports around 100,000 of the consoles a week, is frantically
trying to get the ban lifted. The Japanese company has the right to
appeal to the European patents office.
LG meanwhile, could
apply to the same patents office to get the 10-day import ban extended.
Alternatively, the Korean company could apply for a court order to get
the consoles destroyed but it is highly unlikely the court would grant a
request to eliminate the warehoused goods.
LG argues that
Sony PS3s infringe a number of its patents relating to playback of
Blu-ray Discs. LG called for an investigation into the PS3's Blu-ray use
in a filing with the US international trade commission earlier this
month, and said it sought a "permanent exclusion order ... excluding
entry into the United States" of the games console.
If Sony
is found to have infringed LG patents, it could be forced to compensate
the South Korean manufacturer for each PS3 it has sold around the
world, which could cost hundreds of millions of pounds.
The two technology giants are involved in a complex web of seven separate patent disputes, with Sony also seeking to block shipments of LG smartphones to the US.
Rotterdam
and Schiphol are the main import points for PS3s for both the UK and
continental Europe. The consoles are being stockpiled in Dutch
warehouses until it becomes clear how the case will develop.
A
spokesman for Sony Playstation said: "We are currently looking into
this matter, and cannot make any comments at this point in time." LG
declined to comment, although sources close to the company confirmed the
current legal position.
Sony has sold more than 3m PS3s in
the UK since its launch in March 2007. The Japanese manufacturer is
understood to have a stockpile of around 6,500 PS3s in Germany and
10,000 in the UK.
However, the majority of PS3 sales around
Europe are pre-orders, meaning they are already sold before they gather
dust at warehouses in the UK and elsewhere. Stockpiles could run out
within two to three weeks if the ban is not lifted, the Guardian
understands.
http://www.guardian.co.uk/technology/2011/feb/28/playstation-3-lg-legal-dispute
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