Domestic LED listed companies' patent risks are expanding

Less patents, low efficiency, 70% domestic patents or invalid
In May, domestic LED packaging giant Guangzhou Hongli Optoelectronics (300219.SZ) and LED display manufacturer Alto Electronics (002587.SZ) successfully landed on Shenzhen GEM and SME board respectively. Next, Zhou Ming Technology and Ruifeng Optoelectronics, which have been successful, will also be IPOs. This means that there will be more than 10 LED companies listed in China.

"The more domestic LED listed companies, the more international LED giants can start or target, because the market size is large enough. China's LED lighting patent war will be launched." Researcher of Suzhou Institute of Nanotechnology, Chinese Academy of Sciences, Suzhou Najing Liang Bingwen, chairman of Optoelectronics, recently told the China Business News.

International LED giants and many patent phishers are already collecting relevant evidence. Some domestic LED companies have received lawyers' infringement letters, but they have not yet disclosed them.

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"Although domestic LED companies have applied for a lot of LED patents or even LED invention patents in recent years, most of them are not original. Most of them are based on the original patents of international LED giants. Some repairs are made, and the patents contain gold. "There is a big discount." Liang Bingwen pointed out, "If you really have a patent lawsuit with the international LED giant, nearly 70% of the domestic invention LED invention patents may be invalid. The reason why the international LED giant has not used patent weapons to start with domestic enterprises, the main reason is Waiting for the growth of Chinese LED companies."

In fact, in the past 15 years, the global LED patent lawsuit has never stopped.

In 2006, Nichia Chemical sued the British retailer Argos for patent infringement of white LEDs; in the same year, Nichia and Seoul Semiconductor of South Korea filed a lawsuit against each other. Last year, Nichia also initiated a patent lawsuit against Taiwan’s Yiguang, Tsann Kuen Japan and Wilmar. Recently, Philips has sued South Korea's Seoul Semiconductor patent infringement, and Cree sued Xuming for patent infringement.

Industry data shows that from 1996 to 2010, there were 168 LED patent cases in the world. Among them, 62 from Nichia, 28 from Philips, 20 from Cree, 18 from Seoul Semiconductor, 15 from Toyota Synthetic, 14 from OSRAM, 18 from Pan-Platinum Group, and 10 from patent licensing companies.

However, the patent war between international LED giants generally ends with a settlement and a patent cross-licensing. Since this year, OSRAM, Cree, Nichia, Toyota Synthetic and Philips have respectively reached the LED patent cross-licensing agreement. So far, the world's top five LED giants have basically formed a new new patent crossover network.

"The new patent crossover network formed by the international LED giant means the formation of the LED patent alliance. The most terrible thing is that the LED patent alliance has excluded domestic LED companies." Liang Bingwen pointed out that many domestic LED patents are also international LED giants. Applying in China, "So, for domestic companies, LED is an industry full of 'mines'."

Perhaps the numbers are more telling of the crisis. At present, there are 124,000 LED patent applications worldwide, including 20,000 in the US, 25,000 in China, and 49,000 in Japan.

"What is more worthy of attention is that China's 25,000 LED patents, how many of them belong to Chinese companies themselves, how many LED patents are original is still a question mark." Liang Bingwen said.

According to the domestic LED company annual report or prospectus data, Ruifeng Optoelectronics, Hongli Optoelectronics, Lehman Optoelectronics (300162.SZ), Dry Photoelectric (300102.SZ), Sanan Optoelectronics (600703.SH) and The total number of LED patents of the six companies of Dehao Runda (002005.SZ) is 707, and there are only 77 invention patents. Dehao Runda, which owns 44 invention patents, mainly originated from the acquisition of EPIVALLEY in South Korea.

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