Companies will be scaling back quotes by 10 percent with the expiry of licenses on LED technologies

The discontinuation of many foreign-held patents on diode-based technologies by 2010 is expected to cut prices of China-made LED bulbs and tubes further. Among the multinational companies with several licenses expiring in the next few months are Osram, Nichia and Cree.

Thanks to lower outlay resulting from fast advancements in solid-state lighting, prices are already down 10 to 20 percent from 2008 levels. With the imminent lapsing of patents, quotes are forecast to decrease at least 10 percent.
LED bulb and tube suppliers said competitively priced products will help improve market uptake. This is crucial especially now that the US and the EU have started banning or limiting the use of light sources with high power consumption such as incandescent bulbs. At present, designs are about 10 times more expensive than halogen versions, with wattage contributing heavily in determining prices. Most end-users therefore tend to choose the latter even though LED lamps are more energy efficient and have a longer service life.
Makers are hoping the cancellation of licensing duties in coming months and the subsequent reduction in prices will change this situation and hasten product acceptance.
 

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