LG Display said Wednesday that it has dropped its injunction against its biggest rival Samsung Display, a few weeks after Samsung Display had done the same in a similar injunction against LG Display.

The Korea Times today reported that LG Display filed to the Seoul Central District Court to drop three patent infringement cases related to in-plane switching (IPS) display-making technology.

Samsung has already dropped its request for an injunction against LG Display over organic light-emitting diode (OLED) technology.

It seems that the two Korean giants are coming closer to a cross-licensing agreement over display and specifically OLED panels.

In a surpising move, Samsung has decided to adopt LG?s in-house OLED display-making technology to better compete in that sector. According to Samsung officials, the company will start manufacturing white-OLED lines, scheduled to go online from late 2013.

LG's AMOLED TVs utilize oxide TFT backplanes and the White OLED evaporation method. Eliminating the need for fine metal mask technology in OLED production, White OLED provides an easier way to mass-produce OLED panels.

Samsung, in contrast, had initially used LTPS TFT backplane and the RGB OLED evaporation method in its AMOLED TV prototypes. Mainly applied in small- and medium-sized displays, sets with LTPS TFT backplanes and RGB OLED evaporation exhibit improved OLED performance, it is generally agreed. But due to low yields and high costs,have proven difficult for Samsung to launch AMOLED TVs anytime soon using these technologies.

A cooperation over OLED technologies would help both companies: Samsung adopts the white OLED process for large-size production, where LG Display's experience would be helpful. On the other hand, LG Display has stopped working on mobile OLEDs due to their lack of the RGB evaporation technology and know-how - a sector where Sansung Display is the clear leaader. As OLED takes share in mobile devices applications, LG Display may want to offer OLED as well as LCD, and if so, Samsung's experience would be helpful.