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Supreme Court sides with Golfzon over patent fight with Kakao VX Ruling likely to have little impact on two companies

Translated by Kim So-in 공개 2021-07-07 07:47:46

이 기사는 2021년 07월 07일 07:43 thebell 에 표출된 기사입니다.

Golfzon has practically won a patent infringement lawsuit against Kakao VX, which has lasted for five years. But the ruling is unlikely to have a huge impact on Kakao VX's screen golf business as it no longer uses the patent technology.

The Supreme Court Monday overturned the ruling by a lower court, which sided with Kakao VX, and remanded the case to the Patent Court.

Golfzon filed patent infringement suit against Kakao VX in 2016, claiming that Kakao VX infringed on the virtual golf simulation device technology, which Golfzon applied for a patent in 2010.

After that, the Seoul Central District Court sided with Golfzon in September 2019 while the Patent Court ruled in favor of Kakao VX earlier this year before the top court’s ruling.

In the latest ruling, the Supreme Court said, "The (Patent Court's ruling) interpreted that the defendant (Kakao VX)'s product was not equipped with the technology to adjust the distance with the preset distance reduction rate and a correction value according to terrain conditions," adding, “This judgment carries an error as it affects the ruling by misunderstanding legal principles regarding the interpretation of claims.”

This means the Supreme Court has finally ruled that Kakao VX has infringed on a Golfzon patent. Accordingly, only the legal judgment of the extent of damage and the amount of compensation for damages will be decided on the premise that Kakao VX's patent technology infringement is true.

“We feel bad that the Supreme Court overturned the ruling and remanded it," an official at Kakao VX said. He added that the company will fully prepare for the next trial.

The top court's ruling is likely to have little impact on both companies’ business as Kakao VX no longer uses the particular technology. Kakao VX is applying its own technology to the equipment used in its screen golf courses.

Last year, Kakao already set aside 2.8 billion won ($2.47 million) worth of damages and other expenses as provisions for lawsuits. The actual payment of damages has also been made as it deposited 3 billion won in the court. Golfzon is likely to receive 3 billion won in damages. (Reporting by Sang-woo Seong)
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