In recent years, Chinese LED companies have achieved remarkable success in overseas markets. However, upon closer inspection, it becomes evident that many of these companies haven't truly "gone global." Most of them are still entering foreign markets by either branding or engaging in OEM production, while those that manage to establish their own brands abroad remain few and far between.
As China's economy transitions into a new phase of development, innovation and intellectual property protection are becoming increasingly critical drivers of economic growth. This shift indicates that the era of competing solely on price, as seen in the domestic market, is drawing to a close. Instead, leveraging intellectual property and fostering innovation will become the norm for future competition.
In the lighting sector, China holds a significant edge over the rest of the world when it comes to the number of design patents. While this is commendable, it also prompts reflection on whether having these patents is enough to deter plagiarism and encourage corporate innovation. True progress lies not just in design capabilities, but in ensuring that these patents effectively protect rights and motivate businesses to innovate.
In 2017, patent disputes in the LED industry surged. Companies like Japan’s YAGUA, Yiguang, and South Korea’s Seoul Semiconductor have been actively engaged in legal battles over patents.
One notable case involved Nichia suing U Ultra for infringement. Earlier this year, Nichia accused HTC’s flagship smartphone, the HTC U Ultra, of using a white LED that violated its YAG patent. Filed in June, the lawsuit was brought before the Dusseldorf Regional Court. Nichia alleged that HTC and its subsidiaries had infringed on the key patent EP 0936682 (German patent number DE 69702929) for YAG white LEDs. They demanded compensation for damages. This isn’t the first time Nichia has taken action against HTC. Previously, they accused HTC’s Desire 626 of using white LEDs that infringed on two Japanese white LED patents, leading to a lawsuit in Tokyo in October 2016 against HTC NIPPON CORPORATION and its dealers.
Seoul Semiconductor scored a victory against Kmart in the U.S. This major global retailer, with a 120-year history and annual sales of $26 billion, was found to have infringed on Seoul Semiconductor’s patents regarding high color rendering technology, phosphor combinations, multi-chip placement, LED epitaxial layer growth, and omnidirectional LED bulb technology. Last year, Seoul Semiconductor filed a lawsuit in the federal court in California. The dispute involved patents related to filament LEDs, which earned Seoul Semiconductor's technical consultant the 2014 Nobel Prize in Physics.
In another case, Silicon Nitride accused Rayvio of infringing on its patent for gallium nitride compound semiconductors and luminous elements, claiming it significantly improved LED luminous efficiency.
Mitsubishi Chemical and the National Institute for Materials Science also saw progress in their patent battle against Infineon Optoelectronics in China. The committee upheld the validity of a key patent on red phosphors, rejecting an appeal.
Everlight Electronics filed a lawsuit against Seoul Semiconductor in Germany, alleging infringement of its patented technologies. Everlight sought an injunction to halt the sale and distribution of Seoul Semiconductor’s infringing products.
Jingdian also took legal action against Lowe’s in the U.S., accusing the retailer of selling products that infringed on several of its crystal electricity patents.
Lineng Lighting successfully sued Zhongshan Lighting Co. and Zhongshan Guzhen Lighting Appliance Factory in China for patent infringement, winning a favorable judgment.
Seoul Semiconductor also initiated a lawsuit against Mouser Electronics for selling infringing high-power LEDs.
Nichia accused Hongqi Technology of infringing on its YAG patent, a ruling supported by the German Dusseldorf Court of Appeal.
Finally, Lynk Labs reached settlements with Acuity Brands and Schneider Electric, resolving all patent litigation claims.
This flurry of legal actions underscores the growing importance of intellectual property in the competitive landscape of the LED industry.
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