2009-10-05
Philips and Epistar Settle LED Patent Disputes
Royal Philips Electronics and Epistar Corp. recently announced that they have reached an out of court agreement to amicably settle patent disputes regarding current light-emitting diode (LED). Both Philips and Epistar will withdraw all of their respective claims and counterclaims as part of the settlement. The settlement also includes Philips’ agreement to license its AlInGaP LED technologies to Epistar, while the exact terms of the license are confidential.
Philips and Epistar are the world’s two largest ultra high-bright red (UHB) LED chipmakers. The two companies had been entangled in patent infringement litigation for years, and the U.S. International Trade Commission had previously rendered a limited exclusion order to block end products incorporating the disputed chips from entering the U.S. market. The patent in dispute will expire at the end of this year.
The UHB LED chips are used in auto brake lights, traffic signs and outdoor displays. Epistar has lately boosted its output capacity of the chips to an amount of 300 million units, and sales of the chips account for 25-30% of the company’s revenues. It is expected that the settlement will facilitate Epistar’s shipments and better improve the company’s competitive edge.
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