Seoul semiconductor emerges victorious in German patent lawsuit

Seoul semiconductor headquarters [Courtesy of Seoul semiconductor]

The Higher Regional Court of Düsseldorf has banned products from several light-emitting diode (LED) manufacturers for infringing on Seoul Semiconductor Co.’s patents, raising expectations for the South Korean company’s potential market expansion in Germany and other EU markets.

The higher regional court, on May 11, upheld a lower court’s ruling that banned the sale of LED engines and LEDs manufactured by Germany’s OSRAM Licht AG and Taiwan’s Everlight Electronics Co. and distributed by Germany’s major electronic component seller Mouser Electronics Inc., according to Seoul Semiconductor on Wednesday.

Among the banned products are high-power LEDs designed for applications such as powerful lighting, mobile phone flashlights, displays, and automobile headlamps. “These companies have been infringing on our second-generation patented technology, specifically related to enhancing light extraction efficiency, for a period of six to seven years,” the company’s spokesperson said.

Last year, the German Supreme Court dismissed a patent invalidation lawsuit filed by the accused companies, affirming the originality of Seoul Semiconductor’s patented technologies.

The recent ruling from the Düsseldorf High Court pertains to a separate patent infringement lawsuit filed by Seoul Semiconductor, concerning its light extraction enhancement technology. The initial trial for this case took place in December 2018. The light extraction enhancement technology focuses on extracting light more efficiently from LED chips to enhance the brightness of LEDs.

Industry insiders expects that Europe‘s upcoming unitary patent system, set to take effect in June of this year, will be of great help to companies like Seoul Semiconductor in dealing with patent infringements. The introduction of a unified patent court under this system will provide patent protection across Europe for companies that have successfully won patent lawsuits.

The EU unitary patent system comes into force about 10 years after 24 EU member states excluding Spain, Poland and Bulgaria signed the Agreement on a Unified Patent Court in February 2013.

“The launch of a unified patent court in Europe carries great significance in that it makes it possible to enjoy patents with a single effect,” the spokesperson said. “In June this year, we expect that the rulings of our 14 patent cases over the past five years in which we won sales ban on infringing products will be applied collectively in 17 countries, including Germany, France and Italy.”

From next month, the rulings applied in 17 countries is expected to take effect in 25 countries. The industry also raises the possibility that the previous rulings may be applied retroactively. Seoul Semiconductor has secured more than 18,000 patents and is called the “patent king” in the LED industry. The company raised 224.5 billion won ($168.55 million) in sales in the first quarter of last year and is expected to post sales of 250 to 270 billion won in the second quarter of this year.