LG.Philips LCD accused Chunghwa Picture Tubes and the Tatung Companies (customers of Chunghwa Picture Tubes) of infringing certain of its patents having to do with the design and manufacture of LCD modules. LCD modules are used in LCD TVs, computer monitors, and notebook computers, and the industry has grown rapidly, reaching about $60 billion in worldwide revenues in 2005. Morgan, Lewis & Bockius, counsel for LG.Philips, retained Cornerstone Research and Dr. Michael C. Keeley, senior vice president of Cornerstone Research, to assess the damages that LG.Philips LCD had suffered due to the infringement.
Dr. Keeley presented the results of his analysis in the U.S. District Court in the Central District of California. After a six-week trial, the jury awarded LG.Philips LCD $50 million in damages from Chunghwa Picture Tubes, $3 million from Tatung Company, and $500,000 from Tatung Company of America, damage amounts in the range that Dr. Keeley had recommended. The jury also found willful infringement by the three defendants.