Judgments rendered in patent dispute between Nichia and Toyoda Gosei

Toyoda Gosei Co., Ltd. ("Toyoda Gosei")(President: Mr. Takashi Matsuura) previously brought a suit before Tokyo High Court against the "Trial Decision Rejecting the Demand for Invalidation of Patent (affirming the validity of patent right)" rendered by the Japanese Patent Office concerning the following patent, which is one of the patents relating to a gallium nitride-based blue LED which Nichia Corporation owns.

Tokyo High Court (Judge Nagai as Presiding Judge) rendered on October 2, 2001 the judgment to the effect that the JPO s Trial Decision rejecting the demand for invalidation of patent is annulled (substantially invalidating the patent) and thus, our assertions are justified.

Please note that the subject patent is the fourth one of the infringement cases filed by Nichia Corporation against Toyoda Gosei. We consider that as a result of Tokyo High Court judgment rendered this time, Nichia Corporation s claims in the above-mentioned infringement lawsuit should be dismissed immediately.

Notes:

1. Subject Patent No. 2778405:

A gallium nitride-based compound light-emitting device having an Mg-doped p-type GaN contact layer above an Mg-doped p-type GaAlN clad layer in a gallium nitride-based compound light-emitting device of a double-hetero structure with p-n contact.

Concerning the subject patent, the Trial Decision rejecting the demand for invalidation of patent was given by JPO on December 6, 1999 and Toyoda Gosei brought a suit before Tokyo High Court against the trial decision made by JPO.

2. Grounds for taking the action demanding the annulment of trial decision [Content of JPO s trial decision rejecting the demand for invalidation of patent]:

Since "having an Mg-doped p-type GaN contact layer above an Mg-doped p-type GaAlN clad layer" is not described in the cited references, the invention is novel and it is not possible for persons skilled in the art to easily invent it based on the cited references. .

[Assertions by Toyoda Gosei]

The Japanese Patent Office misjudged the novelty and inventive step in the invention, and therefore, the patent is invalid.

3. Judgment of Tokyo High Court

Concerning the JPO s Trial Decision to the effect that both the novelty and inventive step exist in the invention, Tokyo High Court rendered judgment that the subject patent is invalid by rejecting the JPO s Trial Decision on the ground that the invention has no inventive step, without even going to the extent of judging the novelty.

Toyoda Gosei Files Patent Infringement Suit Against Nichia Corporation

September 28, 2001

Toyoda Gosei Co., Ltd. announced today that it has filed a patent infringement lawsuit against Nichia Corporation in the Osaka District Court seeking injunction against Nichia Corporation s manufacturing, use, sale and offering for sale of the gallium nitride based Blue LED. Concerning the subject patent, as were previously covered in news reports, the Supreme Court rejected, on September 14, 2001, Nichia Corporation s appeal against the Judgment of Tokyo High Court annulling the trial decision for invalidation of patent given by the JPO, and thus, Toyoda Gosei has won the litigation.

The patent, Japanese Patent No. 2737053, entitled "A Light-Emitting Gallium Nitride-Based Compound Semiconductor Device", relates to a basic composition of a LED device having a double-hetrostructure with an undoped active layer, allowing the light-emitting efficiency to be improved.

Please note that Toyoda Gosei withdrew today the lawsuit that has been pending at Tokyo District Court seeking injunction prohibiting Nichia Corporation s manufacturing and sale based on the patent as Toyoda Gosei considers the accused products is not currently offered for sale.

Toyoda Gosei has been developing Blue LED as a pioneering enterprise ahead of Nichia Corporation. Toyoda Gosei has been litigating against Nichia Corporation with respect to a number of patents, etc., and will continue asserting to enforce its intellectual property rights.

Supreme Court Judgment Affirming Validity of Toyoda Gosei s Patent Rendered (Final and Conclusive in favor of Toyoda Gosei)

September 18, 2001

Concerning the Blue LED, Toyoda Gosei Co., Ltd. and others ("Toyoda Gosei") have won the suit final and conclusive as follows with respect to the subject patent, one of the series of patent infringement suits between Toyoda Gosei (President: Matsuura) and Nichia Corporation. The suit for which the judgment was recently rendered final and conclusive relates to the suit against trial decision of invalidity of the patent, Japanese Patent No. 2737053, entitled "A Light-Emitting Gallium Nitride-Based Compound Semiconductor Device", owned by Toyoda Gosei, given by the Japanese Patent Office.

Toyoda Gosei filed the suit against trial decision with Tokyo High Court following the decision on trial for invalidation given by the JPO on October 26, 1999. Tokyo High Court (Judge Shinohara as Presiding Judge) rendered the decision as of March 21, 2001 to the effect that "the trial decision for invalidation of patent is annulled." and Nichia Corporation appealed to the Supreme Court against the judgment, and then the Supreme Court (Judge Kitagawa as Presiding Judge) rejected the appeal on September 14, 2001. This case relates to the subject patent, one of the four litigation cases in each of which injunction against infringement of patent right is sought by Toyoda Gosei against Nichia Corporation.

Toyoda Gosei Files Patent Infringement Suit Against Nichia Corporation

September 3, 2001

Toyoda Gosei Co., Ltd. announced today that it has filed a patent infringement lawsuit against Nichia Corporation in the Osaka District Court seeking injunction against Nichia Corporation s manufacturing, use, sale and offering for sale of the gallium nitride-based Blue LED.

The patent, Japanese Patent No. 3209096, entitled "A Light-Emitting Semiconductor Device Using Group III Nitride Compound ", relates to a basic composition of a LED device allowing the reliable semiconductor device with improved luminous intensity, device characteristics, and reliability.

Toyoda Gosei alleges in its complaint that Nichia Corporation is infringing the 3209096 patent by manufacturing, sale and offering for sale of the gallium nitride-based Blue LED in Japan.

Toyoda Gosei has been developing Blue LED as a pioneering enterprise ahead of Nichia Corporation, and is one of the largest Blue LED manufacturers in the world. Toyoda Gosei has been litigating against Nichia Corporation with respect to a number of patents and utility model rights, and will continue to enforce its intellectual property rights.

Toyoda Gosei Files Patent Infringement Suit Against Nichia Corporation

August 10, 2001

Toyoda Gosei Co., Ltd. announced today that it has filed a patent infringement lawsuit against Nichia Corporation in the Osaka District Court seeking injunction against Nichia Corporation s manufacturing, use, sale and offering for sale of the gallium nitride-based Blue LED

The patent, Japanese Patent No. 3026102, entitled "A Light-Emitting Gallium Nitride-Based Compound Semiconductor Device", relates to a basic composition of a LED device allowing the actuating voltage of the light-emitting device to decrease and light-emitting efficiency to be improved.

Toyoda Gosei alleges in its complaint that Nichia Corporation is infringing the 3026102 patent by manufacturing, sale and offering for sale of the gallium nitride-based Blue LED in Japan.

Toyoda Gosei has been developing Blue LED as a pioneering enterprise ahead of Nichia Corporation, and is one of the largest Blue LED manufacturers in the world. Toyoda Gosei has been litigating against Nichia Corporation with respect to a number of patents and utility model rights, and will continue to enforce its intellectual property rights.