On January 20, Wang Dingfeng, the chairman of Huizhou Guozhan Electronics Co., Ltd., filed a lawsuit against a well-known LED company in Longgang, Shenzhen. The court was ordered to order the defendant to immediately stop infringing one of his invention patents and compensate 10 million yuan. Some intellectual property lawyers said that such a lawsuit is only the tip of the iceberg of low-level competition in this industry. The core patent technology of LED has been monopolized by European, American and Japanese manufacturers. If you do not take effective measures quickly, more and more LED companies will face the same patents.
In this year's Shenzhen two sessions, the Shenzhen Municipal Committee of the People's Republic of China bluntly stated in the proposal: Since 2011, due to the impact of the external economic downturn, the Shenzhen LED industry has encountered difficulties. In 2012, more than 80 LED lighting companies closed down, accumulating in high-speed development. The problem is gradually exposed. Shenzhen LED enterprises mainly focus on midstream packaging and downstream applications, and the upstream high value-added links are extremely weak, and the technical level is relatively backward.
According to public information, there are nearly 2,000 enterprises engaged in research, development, production and application of LED technology and products in Shenzhen, accounting for about 30% of the total number of LED enterprises in China. However, most of them belong to the technical field of LED packaging and application, and there are few manufacturers of chips, semiconductor materials and phosphors. Whether it is technology, process, equipment, or key raw materials, it needs to be introduced.
According to our reporter, the current LED core patent technology is mainly monopolized by well-known European, American and Japanese manufacturers such as Nichia, Philips, Osram, Toyota Synthetic, and US Cree.
“In the past year, China’s LED companies have experienced a significant increase in patent litigation.†Intellectual Property Lawyer Xu Zhibing said that it seems that the biggest victims of patent warfare are Taiwanese manufacturers, but for Shenzhen LED companies, 70% of them are In the overseas market, with the gradual release of production capacity, the market competition is fierce, and the patent mud is difficult to avoid.
"And the patent warfare is not limited to simple litigation." Xu said that many foreign-owned competitors with patents will send lawyers' letters directly to downstream customers suspected of infringing LED companies in China. These customers are often afraid to take on joint and several liability, so they will stop purchasing Chinese LED products.
According to preliminary statistics, as of June last year, Shenzhen LED patent applications reached 17,373, accounting for about 40% of the province. However, the patents for packaging and application in the middle and downstream of the industry are close to 50%, while the proportion of patents in the upstream and chip of the industry is relatively small.
Moreover, Shenzhen's LED patents are mostly peripheral patents, lack of core patents, especially the white light, high-power LED lamp heat balance problems, long-lasting and efficient fluorescent powder and other patents, has been monopolized by Europe, the United States, Japan. To break through this patent barrier, Shenzhen enterprises need to make breakthroughs in technical routes or key materials.
It is understood that more than half of the core patents of companies with core patents are authorized in China, and the scope of protection of peripheral patents applied for in domestic patents falls within the scope of foreign patent protection. Therefore, domestic enterprises have great patent risks. These companies use their core patents to adopt a horizontal (simultaneous access to multiple countries) and vertical (continuous improvement of design, follow-up applications) expansion methods, and a rigorous patent network is deployed worldwide. For the latecomers of the LED industry like Shenzhen, the development is greatly restricted by patents.
Yan Hanjun, chairman of the Shenzhen Intellectual Property Research Association, said: "The risk is manifested in the following aspects: First, the lack of basic patents, easy to lose the commanding heights of the market, the profit will be taken away by others sooner or later; if not to increase research and development efforts Supplemented by other favorable measures, such as striving for a more favorable license agreement, establishing a closer domestic alliance, may face the same dilemma encountered by other industries; secondly, fewer invention patents; less patent coverage; again, continuous application is not enough etc."
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
In this year's Shenzhen two sessions, the Shenzhen Municipal Committee of the People's Republic of China bluntly stated in the proposal: Since 2011, due to the impact of the external economic downturn, the Shenzhen LED industry has encountered difficulties. In 2012, more than 80 LED lighting companies closed down, accumulating in high-speed development. The problem is gradually exposed. Shenzhen LED enterprises mainly focus on midstream packaging and downstream applications, and the upstream high value-added links are extremely weak, and the technical level is relatively backward.
According to public information, there are nearly 2,000 enterprises engaged in research, development, production and application of LED technology and products in Shenzhen, accounting for about 30% of the total number of LED enterprises in China. However, most of them belong to the technical field of LED packaging and application, and there are few manufacturers of chips, semiconductor materials and phosphors. Whether it is technology, process, equipment, or key raw materials, it needs to be introduced.
According to our reporter, the current LED core patent technology is mainly monopolized by well-known European, American and Japanese manufacturers such as Nichia, Philips, Osram, Toyota Synthetic, and US Cree.
“In the past year, China’s LED companies have experienced a significant increase in patent litigation.†Intellectual Property Lawyer Xu Zhibing said that it seems that the biggest victims of patent warfare are Taiwanese manufacturers, but for Shenzhen LED companies, 70% of them are In the overseas market, with the gradual release of production capacity, the market competition is fierce, and the patent mud is difficult to avoid.
"And the patent warfare is not limited to simple litigation." Xu said that many foreign-owned competitors with patents will send lawyers' letters directly to downstream customers suspected of infringing LED companies in China. These customers are often afraid to take on joint and several liability, so they will stop purchasing Chinese LED products.
According to preliminary statistics, as of June last year, Shenzhen LED patent applications reached 17,373, accounting for about 40% of the province. However, the patents for packaging and application in the middle and downstream of the industry are close to 50%, while the proportion of patents in the upstream and chip of the industry is relatively small.
Moreover, Shenzhen's LED patents are mostly peripheral patents, lack of core patents, especially the white light, high-power LED lamp heat balance problems, long-lasting and efficient fluorescent powder and other patents, has been monopolized by Europe, the United States, Japan. To break through this patent barrier, Shenzhen enterprises need to make breakthroughs in technical routes or key materials.
It is understood that more than half of the core patents of companies with core patents are authorized in China, and the scope of protection of peripheral patents applied for in domestic patents falls within the scope of foreign patent protection. Therefore, domestic enterprises have great patent risks. These companies use their core patents to adopt a horizontal (simultaneous access to multiple countries) and vertical (continuous improvement of design, follow-up applications) expansion methods, and a rigorous patent network is deployed worldwide. For the latecomers of the LED industry like Shenzhen, the development is greatly restricted by patents.
Yan Hanjun, chairman of the Shenzhen Intellectual Property Research Association, said: "The risk is manifested in the following aspects: First, the lack of basic patents, easy to lose the commanding heights of the market, the profit will be taken away by others sooner or later; if not to increase research and development efforts Supplemented by other favorable measures, such as striving for a more favorable license agreement, establishing a closer domestic alliance, may face the same dilemma encountered by other industries; secondly, fewer invention patents; less patent coverage; again, continuous application is not enough etc."
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
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