SeonKwang System Acquires Four Patents It Once Challenged

Patent dispute resolved as SeonKwang System buys contested patents

(Source: Aha, https://i-aha.com/product/dc/)

SeonKwang System has acquired four patents related to electric vehicle (EV) charging technology from Aha, a company it had previously challenged in invalidation proceedings. 

The purchase, which took place in June 2024, marks a turning point in the legal conflict between the two companies. The patent invalidation proceedings, which had been initiated by SeonKwang System in September 2023, have now been withdrawn.

The patents acquired by SeonKwang System include:

KR2508481: EV charging device featuring a sealing mechanism that physically separates the control board and RCD circuit from the power meter.

KR2545032: EV charging device equipped with a sealing mechanism for the power meter installed on the main board.

KR2491189: EV charging device with an integrated RCD and power meter on the control board.

KR2491187: EV charging device with a cost-reducing control board that integrates the power meter.

SeonKwang System initially filed for the invalidation of these four patents before the Korean Intellectual Property Trial and Appeal Board (KIPTAB) but has since resolved the matter through this acquisition. 

Filing for patent invalidation before purchasing the patents may have been a strategic move to gain negotiation leverage or reduce licensing costs. It also serves as a defensive measure to prevent future disputes and strengthen the company’s patent portfolio.

The Korea Exchange announced on September 20, 2024, that it had decided to maintain the listing of Aha's shares. The decision followed a reconvening of the KOSDAQ Market Listing Disclosure Committee, where the exchange reviewed whether Aha met the criteria for delisting. The committee concluded that Aha did not meet the threshold for delisting, and as a result, trading in Aha’s shares resumed on September 23, 2024.

Earlier in the year, on February 7, 2024, Aha had disclosed that it faced allegations of accounting violations and was under investigation by the Financial Supervisory Service (FSS). This prompted the Korea Exchange to initiate a review in April 2024 to determine whether Aha's shares should be delisted. However, no final decision was made until the September 20 ruling. 

Aha reported revenues of 78.3 billion won for 2023, with an operating profit of 3 billion won and a net profit of 1.3 billion won.