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In a filing late Wednesday with the U.S. International Trade Commission, Sony said LG violated U.S. trade rules by importing mobile phones and modems that infringed Sony patents.

Sony said LG also infringed patents of some of its licensees, including its Sony Ericsson joint venture, Samsung and Nokia.

The company filed a related complaint with the federal court in Los Angeles, court records show. A copy of that complaint was not immediately available.

LG spokesman John Taylor said in an email that it is company policy not to discuss pending litigation.

Sony said the patent infringement relates to more than 10 phones including the Encore, LG Accolade, Neon, Quantum, Rumor Touch and others.

The patents in the suit involve audio and microphone devices in phones, caller ID technology and transmission power.

LG, South Korea's fourth-largest conglomerate, this month said it is trying to expand its major businesses, including smartphones, and on Tuesday said it wants to raise 2011 sales by 11 percent to 156 trillion won ($135 billion).

Since October, LG has sold 2 million units of the Optimus One smartphone, its most popular smartphone model to date.

Sony reported an operating profit of 68.7 billion yen ($847 million) in the three months ended September 30, reversing a loss the previous year.

The ITC case is In re: Certain Mobile Phones and Modems, U.S. International Trade Commission, No. 337-TA. The California case is Sony Corp. v. LG Electronics USA Inc. et al, U.S. District Court, Central District of California, No. 2:10-09967.

(Reporting by Liana B. Baker; Editing by Phil Berlowitz)

The snowstorm shut roads and canceled flights in New York City and created havoc across the Northeast, where shopper traffic was 11.2 percent below ShopperTrak's expectations for Sunday December 26 and off 13.9 percent on Monday December 27.

The firm said sales for the entire November and December holiday period are on track to be up 4 percent, helped by strong sales in November and December 23, a particularly heavy day for shopping before Christmas.

It expects consumers who stayed home because of the snowstorm will venture out and shop more in the coming days.

"While we do think there will be some retail strength later this week and into the weekend as folks begin to dig out, it will be interesting to see if levels recover in time to boost December sales and the overall holiday shopping season," ShopperTrak co-founder Bill Martin said in a statement.

Other analysts agreed that the blizzard, which dropped 20 inches of snow on Central Park in New York City and more in suburban areas, should only put a small dent into holiday season.

International Council of Shopping Centers chief economist Michael Niemira told Reuters the snowstorm could lower the December sales growth rate by 0.5 percentage point, though some purchases may show up in January.

Scott Bernhardt, the chief operating officer of Planalytics, put the hit at 0.25 percentage point, saying that people will eventually go to malls to redeem gift cards and exchange gifts, which they normally do on December 26 and the following days.

While the gift cards themselves don't generate new sales, customers often end up buying more items when they redeem gift cards or exchange gifts they didn't like.

Shares tracked by the Standard & Poor's Retail Index rose 0.4 percent on Wednesday, slightly better than a 0.3 percent increase for the wider stock market. The retail index is trading close to a 3-1/2 year high reached earlier in December on hopes a strong holiday season will add momentum to consumer spending into 2011 and propel an economic recovery.

Most analysts and research firms are expecting holiday retail sales to improve from 2009's sales.

The National Retail Federation sees holiday sales up 3.3 percent, compared with a 0.4 percent increase last year and a 3.9 percent fall in 2008 due to the financial crisis.

Online sales were up 13 percent to a record $30.8 billion for the November 1 to December 26 holiday period, data company comScore said later on Wednesday.

SALES OFF BEFORE BLIZZARD

U.S. retail sales fell 4.1 percent in the week ending on Christmas Day, according to ShopperTrak, largely because December 26 fell on a Sunday this year and was not included in the week's sales.

China, which produces about 97 percent of the global supply of rare earth minerals, cut its export quotas by 35 percent for the first half of 2011 versus a year ago, saying it wanted to preserve ample reserves. It also cautioned that it has not decided on the quotas for the second half of the year.

The little-known class of 17 related elements is used in numerous electronic devices and clean energy technology.

A European Commission spokesman said the European Union "notes the latest quota figures and expects China to respect its recent assurance of a guarantee of rare earth supplies to Europe." The United States, which earlier this month threatened possible World Trade Organization action over Chinese rare earth export restraints, voiced concern on Tuesday as well.

While Japanese giant Sony said China's move represented a hindrance to free trade, for other companies the Chinese action provided a boost.

Shares of Lynas Corp, which owns the world's richest known non-Chinese deposit of rare earth minerals, jumped more than 10 percent even though it will be at least a year before it is capable of mining any material from a new lode in Australia.

Other rare earth companies, including China Rare Earth Holding Ltd, Arafura Resources, Alkane Resources and Greenland Minerals and Energy Ltd, also gained between 8 percent and 10 percent.

Shares in Colorado-based Molycorp closed Wednesday's session on the New York Stock Exchange up 6.76 percent at $49.30. That was its second-highest close ever and represented a nearly 400 percent jump from the company's initial public offering price of $14 in July.

Molycorp owns a rare earth mine in Mountain Pass, California, which is scheduled to resume production next year after a 10-year hiatus.

"Any reductions China makes in its 2011 exports versus 2010 levels will only exacerbate the global supply shortfall of rare earths we can expect in 2011," Molycorp CEO Mark Smith said in a statement.

U.S. makers of high-tech products such as Apple Inc's iPads and various Japanese companies have been scrambling to secure reliable supplies of the minerals outside of China as Beijing steadily reduces export allocations.

While Sony does not import or buy rare earth elements directly, the minerals are crucial for the production of components used in its finished products. These include magnets, condensers, and abrasives for polishing LCD glass, company spokeswoman Ayano Iguchi said.

SONY MULLS OPTIONS

Sony, maker of Bravia brand flat TVs, Vaio PCs and the PlayStation 3 videogame console, will look for ways to cut its use of rare earth elements, including developing alternative materials, Iguchi said.

"We cannot welcome rare earth export controls or any restrictions that hinder the system of free trade," Sony said in an e-mail statement in response to questions by Reuters.