Englewood Cliffs, NJ- LG Electronics, today confirmed that steps are being taken to resolve a dispute with Iridian Technologies, Inc., relating to LG’s licensing of Iridian’s iris recognition technology. In addition to the parties’ private dispute resolution procedures, LG today filed a lawsuit in U.S. District Court.

The licensing relationship between LG and Iridian’s predecessor, IriScan, Inc., which dates to 1997 led to the development of the first commercially-viable iris recognition systems. IriScan acquired Sensar, Inc., in Q3 2000 and the combined entity became Iridian Technologies. Soon afterwards, Iridian changed its business model becoming exclusively focused on software sales. Retaining its license to the core technology, LG continues to build integrated iris recognition technology systems. Notably, LG has improved the performance and the value of the LG IrisAccess product line and contributed substantial amounts of LG’s own technology expertise. Today, the LG-produced IrisAccess product line is the world’s leading iris recognition platform.

While certain disputes have arisen under the License Agreement, the License Agreement itself specifically provides a mechanism for resolving such issues. On August 20, 2004, LG initiated this dispute resolution process, pursuant to the mutually agreed-upon procedure, to resolve issues in a way designed to minimize disruption and inconvenience to existing and prospective customers interested in the IrisAccess product line. On August 23, 2004, Iridian unilaterally announced a decision to terminate the LG Licensing Agreement. LG has remained committed to prescribed approaches that would allow the parties to resolve disputes with minimal disruption of the market.

On August 27, 2004, LG learned that Iridian had contacted some of LG’s current and prospective customers, making statements about the dispute that LG believes are inaccurate. LG is concerned, particularly in view of the confidentiality provision of the License Agreement. On August 30, 2004, LG filed suit in U.S. District Court in Newark, New Jersey.

  • The suit alleges that Iridian has breached the parties’ License Agreement and has not acted in good faith. The suit requests three specific types of relief from Iridian.
    First, the suit requests that the Court declare that LG products, including LG IrisAccess product line do not infringe Iridian-held patents.
  • Second, the suit also seeks to enjoin Iridian from interfering with LG’s existing customer relations.
  • Third, the suit seeks to enjoin Iridian from interfering with the relationships LG has with potential customers of LG IrisAccess products. LG has specifically asked the court to enjoin Iridian from interfering with LG’s marketing and sales efforts on behalf of LG’s IrisAccess product line.

While these formal dispute resolution processes continue, LG, its business partners, and end users of LG products continue to be licensed under Iridian’s iris recognition intellectual property portfolio. LG continues to market and distribute its IrisAccess product line, incorporating the core technology licensed from Iridian, pursuant to the License Agreement. Pending resolution of the dispute, LG will continue to sell and maintain the IrisAccess product line. LG will continue to support, maintain, and develop its IrisAccess products to ensure that LG’s customers continue to have access to LG’s superior products needed in today’s critical security market.

About LG Electronics, Iris Technology Division

LG Electronics, a principal component of South Korea’s LG Corp. has been active in iris recognition research, development and production since 1997. Today the US-based LG Iris Technology Division has global responsibility for all of the Company’s iris recognition activities. LG IrisAccess® is the world’s leading deployed iris recognition platform and in thousands of locations authenticating the identities of millions and millions of persons. More people look to LG IrisAccess® for iris-based authentication than to all other iris recognition products combined. To find out more, visit www.lgiris.com.