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News Article

Nichia Faces Yen 2 Billion Lawsuit From Ex-Employee Over Blue LED Research

Source: Nihon Keizai Shimbun

August 23, 2001

Tokyo, Japan. Researcher Shuji Nakamura, developer of a blue light-emitting diode (LED), has filed a lawsuit against his former employer Nichia Corp., claiming some 2 billion yen in damages for failure to properly compensate him for his work with the firm, sources close to the matter said Wednesday.

Nakamura, now a professor at the University of California at Santa Barbara, developed a unique bright blue LED and obtained about 100 patents while working for Nichia.

The blue LED technology has attracted global attention and is expected to create a large market in the future. Nichia commercialized a blue LED in 1993 and is estimated to have earned more than 150 billion yen from sales.

In the lawsuit, Nakamura argues that patents covering a basic production method for blue LEDs was indispensable to commercialization. He says payments of 10,000 yen received when he lodged patents and again when the patents were granted are insufficient

He plans to sue Nichia in the Tokyo District Court basing his claim on a clause in the Patent Law, stipulating employees are entitled to receive proper payment for inventions created at work.

Nichia is battling to prevent other firms using blue LED-related patents, with several lawsuits pending against Toyoda Gosei Co., Rohm Co. and other rival firms.

Nichia filed a lawsuit in the U.S. at the end of last year against Nakamura, accusing him of disclosing company secrets to other firms.

A Nichia spokesman said, "We cannot say anything now because we have yet to receive the complaint, but we believe we are in the right. We aim to answer the complaint promptly and fairly."

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