How LED companies fight patent warfare

People in the industry believe that with the gradual expansion of the LED market scale, the prospects are gradually clear, LED companies will step up the use of patented weapons to grasp the market development initiative, patent warfare will show a trend of normalization. While China’s market position is increasingly prominent, it is only a matter of time before Chinese companies face patent litigation by international giants.

Recently, China Taiwan LED packaging factory Everlight filed a patent infringement lawsuit against the Japanese LED manufacturer Nichia Chemical Industry in the District Court of Eastern District, Michigan, United States. Some time ago, Toyota Synthetic's infringement lawsuit against the LED chip maker Formosa Epitaxy once again brought the industry's attention to the ever-increasing patent battle. Last year, OSRAM and Samsung accused each other of the fact that Nichia Chemical and Everlight Electronics have launched a patent sniper battle...

People in the industry believe that with the gradual expansion of the LED market scale, the prospects are gradually clear, LED companies will step up the use of patented weapons to grasp the market development initiative, patent warfare will show a trend of normalization. While China’s market position is increasingly prominent, it is only a matter of time before Chinese companies face patent litigation by international giants.

The patent situation facing China is becoming more and more severe. First, there are few core patents. At present, there are about 124,000 LED patents applied worldwide, of which Japan has the largest number of patent applications, about 49,000, about 20,000 in the United States, and about 25,000 in China. Although the number of Chinese patents exceeds that of the United States, the quality is not dominant. Most of the existing LED patents in China are concentrated in the middle and lower reaches of the industrial chain. Most of them belong to design and utility model patents. The invention patents only account for about 15.6%. Second, the patent network compiled by foreign giants has become a powerful barrier. Since 2010, the five giants of OSRAM, Cree, Nichia Chemical, Toyota Synthesizer and Philips have respectively reached a patent cross-licensing agreement, and a new patent crossing network has basically taken shape. The pattern of the first camp is increasingly consolidated. China's product exports face greater patent risks. As foreign giants accelerate their patent layout in China, when Chinese companies develop to a certain scale, even if products are not exported abroad, they will also face patent giants of foreign giants. How should China reduce patent risk to a controllable range?

First, companies must change themselves from passive to active and seek new changes. The main body of the patent warfare is the enterprise. Only the domestic enterprises can "have hardened their waists" in order to face the impact of foreign patent storms. Domestic qualified companies must increase R&D efforts to overcome difficulties, strive to achieve breakthroughs through innovation in the core areas of the industry chain, increase the quantity and quality of patents, and develop patent early-warning capabilities to perpetuate the awareness of intellectual property protection to all aspects of corporate operations. in.

Second, rely on the alliance to work together. At present, China's LED companies are at a disadvantage in terms of their technical strength, financial strength, and enterprise scale. Their right to speak on patents is still relatively small. Whether they are purchasing patent licenses, or through large amounts of R&D investment and technological innovation, patent applications need to be consumed. For a long time, spending a lot of money. Therefore, it is by no means the best policy to go it alone, and a better way to deal with it is to jointly deal with patent warfare through the alliance. In addition, through the formulation of performance standards for China's LED products, it strives to achieve cross-licensing with foreign companies through standard specifications, thereby minimizing risks and losses in future patent warfare.

Third, strengthen the training and introduction of professionals. The patent warfare is not terrible. The terrible thing is that companies are in a passive position in patent disputes and do nothing. Therefore, patent talent is crucial to the company. In fact, patents are territorial, and there are many differences between the scope of patent protection and specific operations in the patent laws of various countries. Chinese LED companies need to select the country of patent application according to the value of the patent, that is, according to the target market of the product, select the appropriate country for patent planning and layout, and obtain a certain number and quality of patent rights. All of these require professionals to perform system analysis.

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