Cree and Nichia resolve LED patent dispute
Cree and Nichia say that the agreement will allow them to focus more resources on developing technology for next-generation high-brightness LEDs, laser diodes and LED-based lighting.
"This [agreement] with Cree is almost the final step of our aggressive plan of licensing and settlement of patent issues for this year," said Noboru Tazaki, senior managing director and division chief of the Optoelectronics Products division of Nichia.
So far this year, Nichia has signed patent license agreements with Lumileds, Toyoda Gosei and Osram Opto Semiconductors. It seems likely that Nichia will now also settle its legal disagreement with Rohm; Nichia filed an antitrust claim against both Cree and Rohm in November 2001.
"This settlement represents an important step forward for Cree, Nichia, and the entire nitride optoelectronic industry," said Chuck Swoboda, Cree s president and CEO. "I believe this agreement is a recognition of the leadership that Nichia and Cree have demonstrated in both technology and intellectual property. It should allow us to focus more of our resources on developing products to support the growing demand for blue, green and white LEDs, as well as UV and violet laser diodes."
Cree reported that its revenue and earnings targets for the current quarter remain unchanged from those previously announced. However, the company will see a significant reduction in legal costs: analysts at CIBC World Markets suggest that Cree currently has legal bills of around $2 million per quarter.
