Patent warfare is resumed after a lull in the global light-emitting diode (LED) market. Up until several years ago, patent lawsuit was used by some global LED companies as a means to keep new companies in Korea and China in check and also to show off their technological power. At the time, LED market had not even been opened fully. So, most suits were ended with hush-up settlements.

On the other hand, the recent patent suit warfare not only is taking place simultaneously targeting the world, but also has been increased in severity to demand large amounts of damage compensation, aiming for prohibition of sale by the counterparts. In particular, pursued by the late starters in China and Taiwan, global enterprises are deploying an aggressive patent warfare against them.

According to the industry on the 23rd, patent suits are rampant between global companies in the LED package and lighting market as of late.

In the package market, Japan’s Nichia has filed a suit for the white LED patent violation against Everlight, the largest LED package maker in Taiwan. Although a ruling has been made for the prohibition of sale and disposal of the products in Germany, Nichia raised another suit for LED chip against ‘Tachibana Eletech,’ a company selling Everlight products in Japan, in April. In addition, it also raised a suit in June for the yellow (YAG) phosphor against Arrow that sells Everlight products in Australia.

Cree from the U.S. has also raised a new patent suit against Harvatek and Kingbright in the U.S. this month. Cree had reached an agreement on the use of its white LED patents with Kingbright in December 2005. However, it drew the industry’s attention by raising a suit against Kingbright recently.

In the lighting market, Philips filed a suit against JST Performance for violation of its patents on LED lighting modules and driving parts. GE Lighting is also engaged in a suit against TCP of the U.S. in relation to LED light bulbs.

Korean companies, which already had a rough time, are making systematic preparations in order not to helplessly suffer as in the past. Seoul Semiconductor, especially, has dived into the patent suit warfare proactively in order to protect its technologies. This company has recently raised suits against Curtis and Craig, the North American TV makers. Seoul Semiconductor claims that these companies have violated seven of its patents for Epi, fab, package, lens and backlight unit system processes.

The recommencement of patent suit warfare in LED industry is a proof that the global competition has become intensified. LED market is still in the initial phase of development. As much as so, the intention of most companies raising suits is to keep their competitors in check. However, some companies from China are making profits based on technology violation.

“As Chinese and Taiwanese companies entered the global market with ultra low prices as their weapon, patent suits have increased considerably,” said an industry insider. “Compared to global companies, these companies lack awareness to recognize patents as the respective companies’ assets. So, they are being targeted more extensively.”

The Electronic Times September 24, 2014