Hyundai Heavy Industries and Samsung Heavy Industries have won a lawsuit filed against their competitor Daewoo Shipbuilding & Marine Engineering, overturning the first ruling, according to industry sources Tuesday.

The Patent Court of Korea on Friday concluded that DSME’s two patents involving liquefied natural gas cargo boil off gas (BOG) re-liquefaction technology are indistinguishable from the existing technology and therefore the patents registration by DSME was annulled. 

LNG cargo BOG re-liquefaction is an important technology for environmentally-friendly cargo, which is considered crucial for shipbuilders to survive fierce competition amid slow demand.

In January 2014, DSME registered patents on LNG cargo BOG re-liquefaction technology, triggering what became a lawsuit that stretched for three years.

Both HHI and SHI claimed that DSME registered a technology that was widely used by shipbuilders.

For the initial trial on May 2015 brought before the Intellectual Property Trial and Appeal Board, the court ruled in favor of DSME.

Between 2014 and 2016, DSME received a total of 47 orders to build LNG cargo while HHI and SHI received 12 and nine orders, respectively, during the same period.

DSME said it will appeal to the Supreme Court of Korea. 

By Park Ga-young (gypark@heraldcorp.com)