IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF NORTH CAROLINA CHARLOTTE DIVISION Celgard, LLC,

Plaintiff, v. LG Chem, Ltd. and LG Chem America, Inc., Defendants. ) ) ) ) ) ) ) ) )

Civil Action No. 14-cv-43 JURY TRIAL DEMANDED

COMPLAINT FOR PATENT INFRINGEMENT Plaintiff Celgard, LLC (Plaintiff or Celgard), for its Complaint against Defendants LG Chem, Ltd. and LG Chem America, Inc. (collectively Defendants), states as follows: NATURE OF ACTION 1. This is an action under the patent laws of the United States, 35 U.S.C. 1, et seq.,

for infringement by Defendants of a patent owned by Celgard. 2. This Court has jurisdiction over the subject matter of this action pursuant to 28

U.S.C. 1331 and 1338(a). THE PARTIES 3. Plaintiff Celgard, LLC is a company organized under the laws of the State of

Delaware having its headquarters at 13800 South Lakes Drive, Charlotte, North Carolina 28273. Celgards parent company, Polypore International, Inc., is a publicly-traded company also headquartered in Charlotte, North Carolina. 4. industry. Celgard is well-known internationally as a leader in the lithium-battery material

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LG Chem, Ltd. is a company organized under the laws of the Republic of Korea

with its principal place of business at 20 Yeouido-Dong, Yeongdeungpo-Gu, 150721, Seoul, South Korea. 6. LG Chem America, Inc. is a company organized under the laws of Delaware with

its principal place of business at 910 Sylvan Avenue, Englewood Cliffs, NJ, 07632. LG Chem America, Inc. is registered to do business in the State of North Carolina with the North Carolina Secretary of State. LG Chem America, Inc. may be served with process in the State of North Carolina through its registered agent Corporation Service Company at 327 Hillsborough Street, Raleigh, NC 27603. U.S. PATENT NO. 6,432,586 7. Celgard is the owner by assignment of all right, title, and interest in and to United

States Patent No. 6,432,586 (the 586 patent), including the right to sue for past damages. Accordingly, Celgard has standing to bring this action for patent infringement. The 586 patent was duly and legally issued by the United States Patent and Trademark Office on August 13, 2002, is active, and is entitled Separator for a High Energy Rechargeable Lithium Battery. A true and correct copy of the 586 patent is attached hereto as Exhibit A. 8. The 586 patent relates generally to separators for use in lithium-ion batteries,

such as lithium-ion battery separators that have a polymeric layer and a ceramic composite layer or coating. Lithium-ion battery separators are separators placed between the anode and cathode of a lithium-ion battery in order to help prevent contact between the anode and cathode. This is sometimes referred to as preventing shorting. Separators described and claimed in the 586 patent provide this and/or other benefits in an effective manner.

DEFENDANTS, THEIR INFRINGING CONDUCT, JURISDICTION, AND VENUE 9. LG Chem, Ltd. is a Korean company engaged in multiple lines of business, and it

develops, manufactures, uses, offers for sale, exports, imports, markets, distributes, and sells products including without limitation lithium-ion battery separators, coated separators, lithiumion batteries or cells that include separators, high energy lithium-ion batteries or cells that include separators, and products, devices, or energy storage systems including lithium-ion batteries that include separators. LG Chem, Ltd. is one of the worlds largest makers of lithiumion batteries. 10. LG Chem, Ltd. purchases, obtains, or otherwise procures from third parties

uncoated polymeric base films to be used in lithium-ion battery separators. On information and belief, LG Chem, Ltd. also manufactures, develops, and makes its own uncoated polymeric base films adapted to be used in lithium-ion battery separators. 11. In at least some of its higher energy lithium-ion battery products, LG Chem, Ltd.

includes a coated separator. On information and belief, LG Chem, Ltd. applies coatings to polymeric base films it procures from third parties. For example, LG Chem, Ltd. applies a ceramic coating to polymeric base films. 12. LG Chem, Ltd. has purchased, obtained, or otherwise procured, and continues to

purchase, obtain, and procure, polymeric base films from third-party suppliers to which LG Chem, Ltd. applies a ceramic coating layer to produce battery separators that fall within the scope of one or more claims of the 586 Patent (or equivalent thereto) (also referred to herein as infringing battery separators). 13. LG Chem, Ltd. manufactures, assembles, uses, sells, offers for sale, imports,

exports, markets, distributes, or otherwise makes infringing battery separators and lithium-ion 3

batteries or cells containing the infringing battery separators. Upon information and belief, LG Chem America, Inc. sells, offers for sale, markets, imports, or otherwise distributes lithium-ion batteries or cells containing the infringing battery separators. Such activities involving nonCelgard polymeric base films have not been and are not authorized or licensed by Celgard. 14. On information and belief, Defendants, either directly or through entities under

their control or influence, manufacture, make, use, sell, offer for sale, and/or import lithium-ion battery separators, and batteries that include such separators, that fall within the scope of one or more claims of the 586 patent, directly in the United States. For example, on information and belief, Defendants offer for sale, sell, and/or import infringing battery separators (e.g., in batteries, cells, or battery packs to or via manufacturers and distributors of consumer electronics and electric vehicles) in the United States. 15. Defendants know of and have known of the 586 patent. For example, LG Chem,

Ltd. knows of and has known of the 586 patent since at least December 2004. The 586 patent was identified as prior art, discussed within the specification, and included as a patent citation in LG Chem, Ltd.s own patent, U.S. Patent No. 7,662,517, which has a United States filing date on December 22, 2005 and a foreign application filing date of December 22, 2004, and is titled Organic/inorganic composite microporous membrane and electrochemical device prepared thereby. LG Chem, Ltd. has therefore had knowledge of the 586 patent since at least December 2004. 16. LG Chem, Ltd. has also learned of the 586 patent through discussions with

Celgard that occurred prior to the filing of this lawsuit. 17. On information and belief, LG Chem, Ltd. also learned of the 586 patent through

its involvement in patent litigations. LG Chem, Ltd. was and is involved in foreign patent

infringement litigation against a competitor starting in 2011. That litigation involved and involves lithium-ion battery separators. On information and belief, LG Chem, Ltd. learned of the 586 patent at least during such litigation. A foreign counterpart of the 586 patent, Japanese Patent No. JP2001319634, is cited as prior art in one of the patents at issue in that litigation. On information and belief, LG Chem, Ltd. became aware of the 586 patent at least by the time of such litigation through LG Chem, Ltd.s research and analysis of prior art. 18. Defendants have knowledge of the 586 patent through the filing of the present

lawsuit against Defendants as well. 19. Defendants have been involved in lithium-ion battery separator technology for

some time and are highly educated in the technical subject matter of lithium-ion battery separators. On information and belief, upon obtaining knowledge of the 586 patent, and in light of their high degree of education and knowledge of the technical field, Defendants knew that their activities (including their offerings for sale, sales, making, use, and importation) relating to the infringing battery separators constituted direct infringement of the 586 patent in the United States and that their activities caused others who used, offered for sale, made, imported, and/or sold the infringing battery separators or batteries containing such separators to directly infringe the 586 patent in the United States. For example, upon information and belief, Defendants know that their batteries containing the infringing separators are used by Defendants customers to make notebook or laptop PCs, battery packs, tablets, electric vehicles, and/or other products sold in the United States and North Carolina. 20. On information and belief, Defendants have specifically intended that others, such

as battery or battery pack manufacturing, assembly and/or marketing companies; consumer electronics manufacturing, assembly and/or marketing companies; and car manufacturing,

assembly and/or marketing companies, use their infringing battery separators and batteries containing their infringing battery separators in the United States. For example, Defendants specifically intend for LG Chem, Ltd.s batteries including its infringing battery separators to be used in notebook or laptop PCs, battery packs, tablets, and/or other products manufactured by Defendants customers. As an additional example, Defendants specifically intend for LG Chem, Ltd.s batteries including its infringing battery separators to be used in electric vehicles manufactured by Defendants customers. 21. Defendants have caused and will continue to cause irreparable harm to Celgard,

its business, and its reputation through their offerings for sale, sales, making, use, and importation of Defendants infringing battery separator and batteries or cells including infringing battery separators. Celgard has lost sales and profits and suffered irreparable harm, including lost market share, reputation damages, and damage to its goodwill. 22. LG Chem, Ltd. owns multiple patents and is familiar with the standards of patent

infringement. On information and belief, in light of their knowledge of the 586 patent and their knowledge of patents and LG Chem, Ltd.s products and processes, Defendants knew that the use, importation, offer for sale, and sale by others of their infringing battery separators and batteries including their infringing separators in the United States constitutes direct patent infringement of the 586 patent. On information and belief, Defendants provided the products, technical information, and technical support relative to such use of the infringing battery separators and/or batteries, including to battery or pack assembly companies, consumer electronics companies, and car manufacturing companies, in the United States, which evidences Defendants specific intent that such infringing use occur.

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Defendants are sophisticated companies and very familiar with patents through

ownership of LG Chem, Ltd.s own patents. A reasonable person reading the 586 patent and knowing of Defendants infringing battery separators would know that the infringing battery separators infringe the 586 patent and that Defendants activities infringe or induce infringement of the 586 patent in the United States. 24. The specific instances of infringement described above are provided as examples.

On information and belief, Defendants and/or their customers have engaged in at least other offers for sales, uses, importations, makings, and/or sales of infringing battery separators and/or their batteries containing infringing battery separators in the United States. 25. On information and belief, this Court also has personal jurisdiction over LG

Chem, Ltd. based on its contacts purposefully directed at the United States. LG Chem, Ltd. has continuous and systematic contacts with the United States and the State of North Carolina. 26. LG Chem, Ltd. makes, offers for sale, sells, and imports batteries, including

batteries containing infringing battery separators, to battery distribution companies and/or consumer electronics or vehicle companies, including on information and belief, some companies or manufacturers that assemble, market, distribute, sell, offer for sale, and/or import consumer electronic products and electric vehicles in the United States and in North Carolina. 27. LG Chem, Ltd. also has purposefully and systematically conducted business with

companies in North Carolina, the Western District of North Carolina, and in Charlotte, North Carolina, including in-person meetings with employees of LG Chem, Ltd. 28. LG Chem, Ltd. also has regularly conducted business with other persons in the

Western District of North Carolina including the lithium division of a corporation located in

Bessemer City, North Carolina. Upon information and belief, LG Chem, Ltd. has shipped products to this corporation over at least the past about five years. 29. LG Chem, Ltd.s battery products, including those that contain the infringing

battery separators, are offered for sale, sold, and/or imported directly to consumers in the United States, including those in North Carolina, through multiple distribution entities with websites available on the Internet that are accessible by a person residing in North Carolina. 30. LG Chem, Ltd. frequently displays and promotes its products in marketing

materials throughout the United States, including one such ceramic coated separator referred to as its safety-reinforced separator (SRS), for use in at least automotive battery applications. 31. LG Chem, Ltd. owns property in the United States. For example, it has filed

multiple patent applications in the United States, including the above referenced patent, U.S. Patent No. 7,662,517. 32. LG Chem, Ltd. regularly conducts business throughout the United States directly

and through a number of its wholly-owned subsidiaries, including LG Chem Michigan Inc., a Delaware corporation; LG Chem Power Inc., a Michigan corporation; and LG Chem America, Inc. 33. On information and belief, LG Chem, Ltd. further derives substantial revenues

from its regularly conducted business activities throughout the United States and North Carolina. On information and belief, LG Chem, Ltd. receives substantial revenue from its activities and the activities of its U.S. subsidiaries in the United States. On information and belief, LG Chem, Ltd. is in regular contact with its subsidiaries and affiliates in the United States and directs communication into the United States.

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LG Chem, Ltd. maintains an English-version website at http://www.lgchem.com/.

On this website, LG Chem, Ltd. provides information regarding its activities and products, including LG Chem, Ltd.s rechargeable battery products which include the infringing battery separators. On information and belief, LG Chem, Ltd.s website is directed to marketing, offering for sale, and selling its products and services in the United States, including directed to marketing, offering for sale, and selling its products and services in the Western District of North Carolina. 35. This Court has personal jurisdiction over LG Chem, Ltd. in light of the activities

of LG Chem, Ltd. and its U.S. subsidiaries recited herein. 36. This Court also has personal jurisdiction over LG Chem America, Inc. because

upon information and belief, LG Chem America, Inc. does business in North Carolina and/or has otherwise established contacts with North Carolina making the exercise of personal jurisdiction proper. 37. LG Chem America, Inc. is registered to do business in the State of North Carolina

with the North Carolina Secretary of State and maintains a registered agent in North Carolina. 38. Upon information and belief, LG Chem America, Inc. conducts substantial

business within North Carolina and within this District and regularly solicits business within North Carolina and this District deriving substantial revenue from customers, distributors, and/or vendors residing in North Carolina. 39. LG Chem America, Inc. is in the business of selling, offering for sale, marketing,

or otherwise distributing lithium-ion batteries and related products. Upon information and belief, LG Chem, Ltd. transferred its knowledge of the above-referenced matters to LG Chem America, Inc.

40. and 1400(b).

Venue is proper in this judicial district pursuant to at least 28 U.S.C. 1391(c)

COUNT I (Direct Infringement of United States Patent No. 6,432,586) 41. Celgard realleges and incorporates herein by reference the allegations set forth in

Paragraphs 1-40 of this Complaint. 42. On information and belief, Defendants have directly infringed and continue to

directly infringe the 586 patent in violation of 35 U.S.C. 271(a). For example, on information and belief, Defendants, either directly or through entities under their control or influence, have offered for sale, sold, used, and imported infringing battery separators and batteries containing the infringing battery separators in or directly into the United States. For example, on information and belief, Defendants have sold and shipped batteries containing infringing battery separators to consumer electronics, laptop, battery pack, and/or electric device manufacturers and/or distributors in the United States. As an additional example, on information and belief, Defendants have sold, marketed, offered for sale, and shipped batteries containing infringing battery separators to electric vehicle manufacturers and/or distributors in the United States. 43. On information and belief, Defendants will continue in and enlarge their

infringement of the 586 patent unless and until they are preliminarily and permanently enjoined by this Court. For ongoing and future infringement, Celgard will continue to suffer irreparable harm unless this Court preliminarily and permanently enjoins Defendants, their agents, employees, representatives, and all others acting in concert with Defendants from infringing the 586 patent.

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44.

Celgard has been and continues to be damaged by Defendants infringement of

the 586 patent. Celgard is entitled to recover damages in an amount to be proven at trial. 45. The infringement of the 586 patent by Defendants has been willful and deliberate

as Defendants have acted in an objectively reckless manner in view of the high likelihood that their acts constituted infringement of the 586 patent and with full knowledge of Celgards rights in the 586 patent. Celgard is entitled to increased damages under 35 U.S.C. 284 and attorneys fees and costs under 35 U.S.C. 285. COUNT II (Induced Infringement of United States Patent No. 6,432,586) 46. Celgard realleges and incorporates herein by reference the allegations set forth in

Paragraphs 1-45 of this Complaint. 47. On information and belief, Defendants have induced and continue to induce

infringement of the 586 patent in violation of 35 U.S.C. 271(b). On information and belief, Defendants do so, for example, by selling batteries containing infringing battery separators with the knowledge and intent that they are to be incorporated into products made, sold, offered for sale, or being imported into the United States and used in the United States as described above. This use by others constitutes direct infringement of the 586 patent. For example, on information and belief, Defendants offer for sale and sell batteries containing infringing battery separators to consumer electronics, laptop, battery pack, and/or electric vehicle manufacturing companies in the United States, and those companies incorporate batteries containing the infringing battery separators into products, electronics, laptops, battery packs, devices, and/or vehicles containing one or more lithium-ion batteries and being made, sold, offered for sale, or imported into the United States, which is a direct infringement of the 586 patent. On information and belief, Defendants actively encourage this infringing use by, for example, 11

selling the batteries containing the infringing separators to battery or battery pack assembling companies, consumer electronics, product, and/or device manufacturers, and car manufacturers and providing technical support to companies relative to batteries containing the infringing battery separators, and otherwise encouraging the use of the infringing battery separators in the United States. On information and belief, Defendants know of the use by battery assembling companies and consumer electronics and electric vehicle manufacturers, which are a direct infringement of the 586 patent, and have the specific intent that these direct infringements of the 586 patent occur. On information and belief, Defendants derive profit from their sales of batteries containing infringing battery separators. 48. On information and belief, Defendants will continue to induce infringement and

enlarge such induced infringement of the 586 patent unless and until they are preliminarily and permanently enjoined by this Court. For ongoing and future infringement, Celgard will continue to suffer irreparable harm unless this Court preliminarily and permanently enjoins Defendants, their agents, employees, representatives, and all others acting in concert with Defendants from infringing the 586 patent and from inducing infringement of the 586 patent. 49. Celgard has been and continues to be damaged by Defendants infringement and

inducing infringement of the 586 patent. Celgard is entitled to recover damages in an amount to be proven at trial. 50. The infringement and inducing infringement of the 586 patent by Defendants has

been willful and deliberate as Defendants have acted in an objectively reckless manner in view of the high likelihood that their acts constituted infringement of the 586 patent and with full knowledge of Celgards rights in the 586 patent. Celgard is entitled to increased damages under 35 U.S.C. 284 and attorneys fees and costs under 35 U.S.C. 285.

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PRAYER FOR RELIEF WHEREFORE, Celgard respectfully prays that this Court: a. b. patent; c. Grant a preliminary and permanent injunction restraining and enjoining Enter a judgment that Defendants have infringed the 586 patent; Enter a judgment that Defendants have induced the infringement of the 586

Defendants, their officers, directors, agents, servants, employees, successors, assigns, parents, subsidiaries, affiliated or related companies, and attorneys from directly or indirectly infringing the 586 patent; d. Order Defendants to: i. recall and collect from all persons and entities that have purchased any and all products found to infringe the 586 patent that were made, offered for sale, sold, imported into, or otherwise distributed in the United States by Defendants or anyone acting on their behalf; ii. iii. e. destroy or deliver all such infringing products to Celgard; and destroy all marketing materials relating to all such infringing products.

Award Celgard damages in an amount sufficient to compensate Celgard for

Defendants infringement and inducing infringement of the 586 patent, but not less than a reasonable royalty; f. Enter a judgment that Defendants infringement and inducing infringement was

and is willful from the time Defendants became aware of the infringing nature of their products, and that the Court award treble damages for the period of such willful infringement of the 586 patent pursuant to 35 U.S.C. 284;

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g. h.

Award prejudgment interest to Celgard under 35 U.S.C. 284; Declare this case exceptional under 35 U.S.C. 285 and award Celgard its

reasonable attorneys fees, expenses, and costs incurred in this action; and i. Grant such other and further relief as this Court may deem just and proper. DEMAND FOR JURY TRIAL Celgard hereby demands a jury trial on all issues appropriately triable by a jury.

Dated: January 30, 2014

Respectfully submitted, /s/ Steven Gardner Steven Gardner N.C. Bar No. 20984 N. Dean Powell, Jr. N.C. Bar No. 35511 Jonathan E. Harris N.C. Bar No. 46088 KILPATRICK TOWNSEND & STOCKTON LLP 1001 West Fourth Street Winston-Salem, NC 27101 (336) 607-7300 (telephone) (336) 607-7500 (facsimile) sgardner@kilpatricktownsend.com dpowell@kilpatricktownsend.com jeharris@kilpatricktownsend.com

Lance A. Lawson N.C. Bar No. 23835 Myers Bigel Sibley & Sajovec, P.A. 15105-D John J. Delaney Drive, Suite 1 Charlotte, NC 28277 (704) 819-3111 (telephone) llawson@myersbigel.com

Attorneys for Celgard, LLC

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