South Korean flexible printed circuit board (FPCB) manufacturer NewFlex (KOSDAQ: 085670) has failed in its attempt to invalidate a patent held by Gigalane, missing an early opportunity to gain the upper hand in their ongoing patent infringement lawsuit.

On March 30, South Korea's Patent Trial and Appeal Board (PTAB) partially dismissed and partially rejected NewFlex's request to invalidate Gigalane's patent (Patent No. 2183270) for a “high-frequency transmission line integrated sub-board.” NewFlex had filed the request in July 2024, arguing that claims 1–11 of the patent should be nullified. However, the PTAB ruled against NewFlex on all counts. The company can appeal the decision by filing a lawsuit with the Patent Court.

The disputed patent relates to flexible RF cable (FRC) technology for wireless communication. Gigalane claims its FRC enables RF signal transmission and high-speed data transfer using a flexible transmission line, making it suitable for smartphones and small-cell network equipment. The patent documentation also indicates its applicability in wireless terminals.

While NewFlex can still challenge the ruling, the decision puts the company at a disadvantage in its ongoing legal battle with Gigalane. Gigalane had previously sued NewFlex for patent infringement, prompting NewFlex to respond with the now-rejected invalidity challenge.

NewFlex acknowledged the ongoing lawsuit in its latest business report, stating that it is currently defending a lawsuit valued at KRW 200 million (approximately $150,000) and that the outcome remains uncertain.

Despite the legal dispute, the two companies do not directly compete in the same product categories. In 2023, 99% of NewFlex's KRW 174.9 billion ($130 million) revenue came from FPCB products for electronics and automotive applications. In contrast, Gigalane's RF communication division—which includes RF cables, assemblies, and connectors—accounted for 75% of its KRW 41.7 billion ($31 million) revenue.

Gigalane has struggled financially in recent years, reporting three consecutive years of operating losses:

 ● 2022: KRW 7.1 billion loss on KRW 54.7 billion revenue

 ● 2023: KRW 11.8 billion loss on KRW 44.3 billion revenue

 ● 2024: KRW 7.4 billion loss on KRW 41.7 billion revenue

Its mobile RF cable and network cable/connector production lines operated at only 30% capacity in 2023, while its antenna module line ran at 26% utilization.

NewFlex, on the other hand, has maintained profitability since 2021. The company has benefited from market exits by major competitors, such as Samsung Electro-Mechanics, which withdrew from the RFPCB market for camera modules in 2021. Other players, including Daeduck Electronics and Interflex, have also downsized their FPCB businesses due to profitability concerns.