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Frequency of patent blockade, China's led enterprises how to fight

Sep 22, 2017

China led industry development relatively late, in the patent accumulation and foreign still have a certain gap, and most patents only stay in the phase of derivative patents, will inevitably suffer "patent litigation." With the increasing competition in the LED industry, patent disputes, litigation is also growing, many domestic enterprises have recognized the importance of patents, through with the international giant's patent cross authorization to form "Umbrella", to maintain the steady and sustainable development of enterprises.

After the lawsuit, the consequences for the business include up to $ millions of or even hundreds of billions of dollars in damages, a restraining order, a loss of the relevant market, a loss of business opportunities, a lawsuit cost of $ hundreds of thousands of or even $ millions of. Every risk can be a fatal blow to Chinese companies. Experts point out that in the face of litigation, Chinese companies ignore and litigation in the end, is not a wise choice. To some extent, reconciliation is the best outcome for Chinese companies, but it often requires positive action to create the best opportunity for reconciliation and a counterweight to its own advantage.

In addition, it is a powerful way to deal with patents through cross licensing or authorization agreements. Guangdong Crystal Branch Electronics Co., Ltd. (hereinafter referred to as "Crystal Branch Electronics") and Toyota Synthesis Co., Ltd. (hereinafter referred to as "Toyota Synthesis") to reach the white light led patent licensing agreement. Toyota synthesis is a member of B. O. S. E Patent Alliance, with the key technology patent portfolio of white LEDs. In this and Toyota synthesis to achieve the basis of the White Patent Licensing, Crystal Branch Electronics will also be combined with Toyota in the global patent and business to carry out more in-depth cooperation, thus breaking the white patent barrier, in the backlight and lighting the globalization of business development to provide a solid guarantee.

Cree on August 4 announced the signing of the global led Chip patent Cross licensing agreement with the crystal, aimed to further promote the LED lighting and led bulb market growth. According to the terms of the agreement, the two sides will obtain the other side of the nitride led Chip patent license, and give the other part of the other non-nitride led chip patents. Crystal Yuan photoelectric as the world's largest supplier of chips, convinced that the value of intellectual property can not be wiped out, so actively and Cree to reach a cross authorization, and pay the patent fees, while maintaining customer relations, in order to facilitate sustainable development.

Cree, Chairman and CEO Chuck Swoboda, said Cree's innovative technology and a broad portfolio of patents made LED components and lighting products more competitive. And the chairman of the Crystal Electric Li Bingjie also explained that the Patent Cross License agreement, the Crystal will be able to more quickly, smooth the LED chip to the global arena, and take this opportunity to provide services to customers around the world.

At the same time, with the more and more difficult industry operation of the five patent manufacturers, other patent companies began to adopt a patented grant or a patented way to survive. In addition, the chemical is known as the door-gate-level white light patent (YAG patent 925) expired on July 29, 2017, coupled with China's Taiwan billion optoelectronics for the Japanese-Asian chemical holding patent filed patent invalid lawsuit, also in some countries and other parts of the United States to obtain patent invalidation of the successful judgment, Has significantly weakened the patent strength of Japanese and Asian chemicals. With the LED manufacturers to build a patent wall began to disintegrate, in the past these manufacturers rely on patent barriers in the global led market, the prosperity of the world fear no longer.