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Nichia pursues antitrust claim and conspiracy claim against Rohm and Cree

Nichia Corporation announced today the filing of a Sherman Act antitrust claim against Rohm Co., Ltd. and Cree Inc. in the U.S. District Court for the Eastern District of Pennsylvania. This claim asserts that Rohm and Cree entered into a conspiracy to exclude Nichia from the U.S. market and, to further that conspiracy, Rohm knowingly asserted fraudulently obtained and invalid U.S. patents against Nichia.

Nichia s antitrust claim points to events leading up to and culminating in several agreements between Rohm and Cree. In particular, the antitrust claim asserts that Rohm fabricated a domestic industry to obtain ITC jurisdiction by entering a license agreement with Cree in December 2000, three days before Rohm filed its ITC complaint against Nichia. The antitrust claim also states that, in furtherance of its conspiracy with Cree, Rohm knowingly asserted fraudulently obtained and invalid U.S. patents against Nichia.

Filed by Nichia in U.S. District Court, the antitrust claim allows Nichia to pursue discovery that Nichia believes Rohm attempted to avoid with its abrupt ITC complaint withdrawal April 2001. Rohm withdrew its ITC complaint seven days after the ITC judge ordered discovery on antitrust issues and shortly before Rohm was required to submit related documents. The U.S. District court action also allows Nichia to pursue monetary damages and injunctive relief against Rohm and Cree.

While all actions against Nichia in the ITC terminated July 2001, a separate proceeding against Rohm before the ITC is still pending. After Rohm withdrew its ITC complaint, the ITC judge ordered Rohm to file a statement explaining factual details relating to Rohm s licensing transactions with Cree. Based on Rohm s statement, the ITC judge has the option to sanction Rohm or start an ancillary proceeding to investigate the matter further. Sanctions may come in the form of a monetary penalty; an ancillary proceeding is a separate proceeding where the ITC may subpoena documents and hear witnesses.

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