IP, Reports & Roadmaps | Aug 30, 2007

ITC Denies Epistar`s Motion to Stay Exclusion Order in Investigation Initiated by Philips Lumileds

The United States International Trade Commission (ITC) has denied Epistar`s motion to stay the ITC`s Exclusion Order barring importation of Epistar`s OMA, MB and GB LEDs. After the ITC ruled that Epistar`s current AlInGaP LEDs infringe Philips Lumileds` patent rights and issued an exclusion order banning importation of those LEDs, Epistar filed motions before both the ITC and the U.S. Court of Appeals for the Federal Circuit to stay enforcement of the exclusion order. The ITC has denied Epistar`s motion.

In its Opinion, the ITC ruled that "Epistar has not made a showing of likelihood of success on the merits" of its appeal of the decision to issue an exclusion order. In making this ruling, the ITC admonished Epistar for relying "on quotes from the (Administrative Law Judge) ALJ that are presented out of order and without context in an attempt to convey a meaning that is in contrast with that actually expressed by the ALJ," who made the initial determination in the investigation. The ITC also noted Epistar`s "tardy arguments made in circumvention of the Commission`s rules." The Commission opinion concluded that "we properly considered and ruled on all issues raised by Epistar in its stay motion, and a substantial factual record, along with Federal Circuit precedent, supports our determinations."

This ruling should clear the way for the Federal Circuit to deny Epistar`s other motion to stay, leading to enforcement of the Exclusion Order barring importation of the infringing products.
 
About Philips Lumileds Lighting Company:
Philips Lumileds Lighting Company pioneered power LED technology and is the world`s leading provider of power LEDs for everyday lighting applications. The company`s recent records for light output, efficacy and thermal management are direct results of the ongoing commitment to advancing solid-state lighting technology and enabling lighting solutions that are more environmentally friendly, help reduce CO2 emissions and reduce the need for power plant expansion. Philips Lumileds` LUXEON LEDs are enabling never before possible applications in the automotive, camera flash, display, general lighting, and signage markets.

About Royal Philips Electronics:
Royal Philips Electronics of the Netherlands is a global leader in healthcare, lifestyle and technology, delivering products, services and solutions through the brand promise of "sense and simplicity". Headquartered in the Netherlands, Philips employs approximately 125,800 employees in more than 60 countries worldwide. With sales of EUR 27 billion in 2006, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, personal care and home appliances, as well as consumer electronics.

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