Shenzhen LED companies form an alliance to deal with "patent gates"

Due to the increasing number of Chinese LED companies experiencing patent litigation overseas, China’s first LED patent technology industry alliance, the Shenzhen LED Patent Alliance Preparatory Meeting, was held recently. More than 70 Shenzhen LED companies have gathered together. Chips, lighting, backlights, displays, etc.

It is reported that in the core patent technology of LED, especially the key balance of white light, high-power LED lamp thermal balance, long-lasting and efficient fluorescent powder, has been monopolized by European, American and Japanese manufacturers. The control of upstream patent technology by foreign manufacturers has become a "tool" for suppressing Chinese LED manufacturers in overseas markets. Compared with the concentration and coverage of LED upstream core patents, the downstream application level patents are relatively scattered. The technical advantages of Chinese LED companies are concentrated in downstream applications and integration, and have accumulated a large number of patents. However, Yan Shirong, executive vice president of the Shenzhen LED Industry Association, pointed out that the patents of individual Chinese LED companies still have limitations, and it is difficult to form synergies in market expansion. The effect of patent applications is not obvious.

Yan Shirong said that members of the LED Patent Alliance will set up a unified enterprise intellectual property management system to avoid independent development and redundant construction. A cross-licensing of patents between affiliates can be made to form a patent pool. On the one hand, the authorized price of the core patent can be reduced; on the other hand, a core patent can be replaced by multiple application patents, thereby reducing the overall cost of the enterprise.

In the patent battle with foreign LED manufacturers, the "patent pool" form will have stronger bargaining power. Qi Shirong pointed out that after the establishment of the patent alliance, it will plan to use the unified 'patent pool' to negotiate with the upstream core patent manufacturers to negotiate patents.

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