Taiwanese Manufacturers on the Alert as Boston University LED Patent Lawsuits Spread

Patent wars are intensifying and spreading as the LED industry rebounds. Patent disputes within the industry are not solely centered on LED package manufacturers Nichia and Everlight. The industry has begun to focus on Boston University’s  expanding extent of legal actions taken towards patent infringement. The university is known for their close relationship with Cree. Taiwanese LED manufacturers Epistar, LiteOn, and Everlight are currently entangled in patent lawsuits with the university. Interestingly, the lawsuits are not limited to LED manufactures only. The university has also targeted brands . The university’s strength is not to be underestimated, said industry insiders.
 
The university has filed legal action against 10 LED manufacturers and brands over infringement of the university’s U.S. patent 5,686,738 titled “Highly Insulating Monocrystalline Gallium Nitride Thin Film.” Those embroiled in the lawsuit include Nichia, Bridgelux, Epistar, Everlight, LiteOne, Harvatek, Seoul Semiconductor, Samsung, and  others.
 
Boston University has also filed lawsuits in 2013 against brands, including international monitor, computer, and mobile phone manufacturers, such as Acer, Asus, AOC, BenQ, Hannspree, HTC Microsoft, Motorola, Song, LG, Apple, and Amazon.
 
The university has issued around 46 lawsuits since the first filed in October 2012, according to statistics. Currently, Nichia, AXT, Bridgelux, and Honeywell have already settled the lawsuits while Taiwanese manufactures Epistar, Everlight, LiteOn, and Harvatek are still in litigation with the university.
 
Boston University is seen as having a close relationship with U.S. LED manufacturer Cree, who gave rights for U.S. patent 5,686,738 to the company and acted as co-plaintiff during Cree’s patent lawsuit against Nichia in 2001. Boston University is also regarded as part of Cree’s alliance.
 
The strength of the university and attitude towards the lawsuits are not to be underestimated, said industry insiders. Recently, the extent of the lawsuits has broadened to include brands, encompassing Taiwanese manufacturers. The lawsuits have put Taiwanese supply chains on high alert. After Boston University slapped 30 brand s with patent infringement lawsuits, the situation is no longer just a warning. Manufacturers therefore have become extra cautious when selecting supply chains, making sure products have patent protection. The effect of the lawsuits on the supply chain still needs to be monitored.  
 
Chinese LED manufacturers for the most part have not been dragged into the patent battle and only a small fraction of Chinese brand manufacturers, including Lenovo, have become involved in the dispute. This shows that the proportion of export sales of Chinese LED manufactures and brands is still low, and have higher domestic sales. On the list of around 30 manufacturers that have been embroiled in the patent lawsuit with Boston University, Chinese manufacturers make up only a small percentage.
 

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