IP, Reports & Roadmaps | Mar 26, 2009

Everlight Electronics Co, Ltd Signs Cross-License Agreement with OSRAM GmbH

Everlight signed a non-exclusive cross-license agreement with OSRAM GmbH (“OSRAM”), providing the companies (including wholly-owned affiliates) with access in certain areas to each other’s patented LED technology.

Since September 2003 Everlight and OSRAM had been parties of a patent license agreement in relation to white and colored LEDs with conversion technology for some limited applications. Recently, Everlight and OSRAM comprehensively reviewed the terms and conditions of the license and finally reached a new cross-licensing agreement. This new agreement extends the 2003 agreement for all application, including automotive and general lighting and adds a cross license with respect to the use of Everlight's valuable packaging patents by OSRAM. Now, it will be easier for each party to develop and manufacture LED products without concern for the other’s licensed patents. Another benefit, of course, is that customers who use LED products made or sold by Everlight will not be subject to any claims of infringement of OSRAM’s conversion patents in relation to products for all applications that use the LED technology covered by the new agreement.
 
Further, Everlight and OSRAM signed an OEM agreement under which Everlight will supply OSRAM with certain LED products as OEM products. This OEM agreement was signed at the same time as the patent license agreement, and is hopefully expected to become an integral part of business alliance between Everlight and OSRAM.
 
Other terms of the patent license agreement and the OEM agreement were not disclosed but are not expected to have any material financial effect on either party.
 
Everlight has continued to invest in research and development to strengthen its patent portfolio, and currently possesses 1012 LED-related granted and pending patents worldwide. In addition, Everlight has signed numerous license and strategic partnership agreements with universities, laboratories and companies in the LED industry.

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