LG Display (LPL)

11. Intellectual Property

As of September 30, 2009, we currently hold a total of 11,569 patents, including 5,427 in Korea, and 6,142 in other countries.

Intellectual Property

On November 26, 2007, the Controlling Company and Chunghwa Picture Tubes signed a settlement agreement regarding the dismissal of all pending claims and patent agreement, allowing the companies to share patented technology. As part of the settlement, Chunghwa Picture Tubes will pay a settlement payment to the Controlling Company in compensation. The settlement involves multiple elements. Since there was no fair value for all of the elements, the Company did not account for each element separately. The settlement payment is included in legal settlement within other income (expense).

On December 1, 2006, the Controlling Company filed a complaint against Chi Mei Optoelectronics Corp. and AU Optronics Corp. claiming patent infringement related to liquid crystal display and manufacturing process for TFT-LCDs in the United States District Court for the District of Delaware. On March 8, 2007, AU Optronics Corp. and Chi Mei Optoelectronics Corp. countersued the Company in the United States District Court for the Western District of Wisconsin on March 8, 2007, and in the United States District Court for the Eastern District of Texas on May 4, 2007, respectively; however, both cases were successfully transferred to the United States District Court for the District of Delaware according to the Company’s motion to transfer. The Company’s management believes it has valid claims against each counterpart with respect to the disputes in suit.

On April 14, 2006, Positive Technologies, Inc. filed a complaint in the United States District Court for the Eastern District of Texas against, among others, several of the Controlling Company’s customers, including BenQ America Corp., Hitachi America Ltd., Panasonic Corp. of North America, Philips Electronics North America Corp. and Toshiba America, Inc. for alleged infringement of two of its patents relating to LCD displays. In March 2007, the Controlling Company was granted the intervention in the patent infringement case brought by Positive Technologies, Inc. On November 7, 2008, the Controlling Company settled with Positive Technologies, Inc., and the case was dismissed on December 12, 2008 and settlement amount was included in other expense.

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Table of Contents

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

December 31, 2006, 2007 and 2008

On February 2, 2007, Anvik Corporation filed a patent infringement case against the Controlling Company, along with other LCD manufacturing companies in the United States District Court for the Southern District of New York, in connection with the usage of photo-masking equipment manufactured by Nikon Corporation. The Company believes its products do not infringe any patents in suit, and intends to defend vigorously in this matter.

On December 15, 2008, O2Micro International Ltd. and O2Micro, Inc. have requested the United States International Trade Commission (“ITC”) to commence a Trade Remedy Investigation alleging that the Company, LG Display America, Inc. and others have infringed their patents relating to inverter circuits.

Although there can be no assurance as to the outcome, the Company’s management does not expect that the outcome in the above legal proceedings and claims, individually or collectively, will have a material adverse effect on the Company’s financial condition, results of operations or cash flows.