Recently, Cree and Crystal Power signed a global cross-licensing agreement for LED chip patents. The two major LED giants in the United States and Taiwan have joined forces to shock the industry.
It is understood that under the terms of the agreement, the two parties will obtain the patent license for the nitride LED chip of the other party and grant the other party a patent for non-nitride LED chips, aiming to further promote the growth of the LED lighting and LED bulb market. During the term of the agreement, Cree will receive an authorization fee and a license fee from Crystal.
The other terms of the license agreement have not been disclosed, and the technology transfer between the parties has not been included in the agreement.
The patent war in the LED industry continues to burn, and LED companies at home and abroad are busy with LED patent infringement lawsuits. Just like Everglade’s ongoing lawsuits, Cree and Jingdian are strong. Strong teamed up to maintain market leadership by signing a global LED chip patent cross-licensing agreement. And then look at this year, domestic LED companies through the acquisition of international lighting giants to solve patent problems, the remaining international giants have to join forces to prevent domestic LED companies gradually strong.
According to Chuck Swoboda, Chairman and CEO of Cree, "Cuiru's groundbreaking technology and its extensive patent portfolio bring significant performance to its LED devices and LED lighting products. This agreement underscores the commitment of both companies. Accelerate the adoption of LED lighting while respecting the importance and value of international intellectual property law."
Li Bingjie, chairman of Jingdian, also responded, "The signing of the patent licensing agreement will help us accelerate research and development innovation, clearly demonstrating the patent strength of our LED chips and our hopes of further driving the growth of the LED lighting market. With the cross-licensing agreement with Cree, Jingdian is able to provide LED chips all over the world and ultimately benefit our customers."
In this regard, Li Shengfa, a senior analyst at the Institute of Advanced Research and Development of LED Research (GGII), believes that "the reason why Jingdian chose to license the patent for nitride LED chips with Cree is that it is well-intentioned. In 2014, the growth of crystal power revenue 25%, while in the first half of 2015, the revenue of crystal power fell by 9.5%. In the face of the pressure exerted by mainland LED manufacturers, Jingdian’s move is another way out. After authorization, its chips can be sold all over the world. Business plays a facilitating role."
Since the beginning of this year, the domestic LED enterprise mergers and acquisitions continue, since Jinshajiang successfully acquired the Lumileds incident of Philips, and later news that many mainland-listed LED companies intend to acquire Osram's lighting business, Jingyuan and other Taiwanese LED giants in the Mainland LED companies are full of sense of crisis and are looking for change to reverse this trend.
Similarly, the days of the patent licensee Cree are not too good. Relevant data shows that Cree’s third-quarter results in the third quarter of fiscal year have dropped a lot. Since last year, Cree’s patent war against Taiwan’s LED giants has not stopped. After entering the main Taiwanese factory Lunda Electronics, they successively reported two Taiwanese LED companies, and finished the macro Qi, and told Dongbei, and also announced the American rookie company Feit Electric.
"For the giants, in the face of the chip patents that are about to expire in 2017, as well as the increasingly strong domestic LED companies, the international giant's crisis awareness can be imagined." Li Shengfa mentioned.
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