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A TCL store in Qianmen, downtown Beijing. On the 1st, TCL filed a lawsuit against Samsung in a U.S. court. / Jingji Ribao

TCL, China's largest TV maker, has filed a lawsuit accusing Samsung Electronics of siphoning off its market share through false advertising regarding Mini Light Emitting Diode (Mini LED) TVs. Samsung Electronics is reportedly taking the stance that it will actively fight the lawsuit by emphasizing the accuracy of its product descriptions.  

According to Beijing sources familiar with the Chinese electronics industry on the 2nd, TCL filed a lawsuit on the 1st (local time) against Samsung Electronics in the U.S. District Court for the Central District of California, seeking a ban on the Mini LED technology label and monetary damages. In its complaint, TCL first alleged that Samsung brought over an inexpensive, non-Mini LED model from a recycled product line. It went on to stress that Samsung peddled the model to consumers as an attractively priced Mini LED product.  

TCL also claimed that the M-model TV, which Samsung Electronics currently advertises as applying Mini LED technology, actually contains none of the technological advancements of Mini LEDs. In short, TCL argues that it amounts to nothing more than a recycled standard LED TV.  

Mini LED is widely known as a Liquid Crystal Display (LCD)-based TV with 100 to 200-micrometer (㎛) LEDs densely packed into the backlight. While existing premium LCD TVs such as QLED and QNED prioritize color reproduction technology, Mini LED breaks the light source into smaller elements, featuring improved contrast ratios and color reproduction compared to conventional LCD TVs.  

TCL was first to release a Mini LED TV to the market in 2019. In contrast, Samsung Electronics rolled out products in 2021, two years later than TCL. Over that period, Chinese manufacturers dominated the North American Mini LED TV market by putting forth low-priced models. However, the market share landscape has been rapidly shifting as Samsung Electronics and LG Electronics expand their Mini LED lineups—which had centered on the premium segment—into the mid-range market.  

In the global Mini LED market last year, TCL posted a 31 percent market share. Another Chinese vendor, Hisense, followed closely behind TCL at 25 percent. Samsung Electronics stood at a mere 19 percent.This year, however, the situation changed. The rankings flipped as Samsung Electronics expanded its Mini LED shipments. Synthesizing recent reports from Chinese media outlets including Jingji Ribao (Economic Daily), Samsung Electronics claimed first place with a 28.2 percent share of global Mini LED TV shipments in the second quarter of this year. 

Conversely, TCL and Hisense recorded 23.3 percent and 17.2 percent, respectively. In effect, Samsung Electronics cleanly recaptured the top spot in the market.  Within Beijing's electronics industry, observers interpret the move as TCL drawing its sword against Samsung Electronics out of indignation over its recent reversal in the North American Mini LED market. It can also be seen as venting frustration. Regarding this, a Beijing-based patent attorney surnamed Zhou analyzed that Samsung Electronics holds an advantageous position, saying, "TCL's lawsuit appears to be far-fetched at the outset. The likelihood of winning the suit is also quite low. However, its stature could be elevated through litigation. There is little to lose. 

An executive at Samsung Electronics' Beijing branch also voiced confidence that there is no reason for the lawsuit to turn unfavorable, noting, "We are relaxed. TCL's lawsuit is nothing more than obstinacy." TCL's lawsuit seems accurately viewed as an act of venting frustration over having its market share eroded.

                                                                                                            Hong Soon-do