Cree and Feit Settle Patent Dispute
LED company Cree has reached a settlement in its patent infringement and false advertising lawsuit with Feit Electric Company Inc.
The settlement ends US International Trade Commission investigation No. 337-TA-947 (Certain Light-Emitting Diode Products and Components Thereof) against Feit and its Asian supplier, Unity Opto Technology and the corresponding lawsuit in the US District Court for the Western District of Wisconsin.
The agreement also ends Feit's claims against Cree in litigation filed in US District Court for the Middle District of North Carolina. As part of the settlement, Feit and Cree have entered into a royalty-bearing license agreement to the Cree patents asserted in the ITC case and in Wisconsin.
Feit will pay Cree a license issue fee and ongoing royalties as part of the license agreement, and Cree will receive a license to the Feit filament panel patents. The remaining terms of the agreement are confidential.
"Cree has invested over $1.2 billion in R&D over the past 10 years to create fundamental technology that has enabled the LED lighting revolution, and it is our obligation to protect our intellectual property," said Chuck Swoboda, Cree chairman and CEO. "This settlement and license agreement recognises the value of our pioneering technology and ensures we are properly compensated while protecting consumers and Cree shareholders."
Business Outlook Update
While the financial terms of the license agreement are confidential, as a result of the settlement, Cree now targets exceeding its previously announced revenue, net income and EPS targets for its second quarter of fiscal 2017 ending December 25, 2016. Cree will report its second fiscal quarter results and third quarter business outlook on January 24, 2017.
