Supreme Court to hear LG patent case

The Supreme Court said Tuesday that it will consider a patent case between LG Electronics and a group of Taiwanese companies, including Quanta Computer, according to Reuters.

The case could have far-reaching implications on the computer industry because it would determine whether patent holders can receive royalties from various companies as the product moves its way through the manufacturing chain.

LG claimed that the companies infringed on its patents on microprocessor chips in its computers. But Quanta and the other Taiwanese companies said LG licensed its technology to Intel, which made microprocessor chips that it sold to the companies.

The U.S. District Court for Northern California had ruled in favor of the Taiwanese companies, but that ruling was overturned in July 2006 by a federal appeals court. The Taiwanese companies are asking the Supreme Court to overturn that decision.

Quanta's customers include Hewlett-Packard, Dell, IBM and Sony. It also makes the iPhone for Apple.