IP, Reports & Roadmaps | Oct 11, 2007

Seoul Semiconductor reacts on Nichia's Lawsuit

Seoul Semiconductor (KOSDAQ: 046890), one of the eight largest LED manufacturers in the world, announced today that on September 17, 2007 Nichia Corporation filed a lawsuit in the Seoul Central District Court against Seoul Semiconductor Co., Ltd. ("Seoul Semiconductor"). The suit alleges that Seoul Semiconductor's blue chips for white LED products (part no. TWH104-HS), which Seoul Semiconductor produces and sells, infringe on Nichia's Korean patent (no. 406201). Nichia seeks damages for past infringement as well as an injunction against any further infringing activity. Seoul Semiconductor received the complaint from Nichia on Oct 1st, 2007 and following its investigation, responds it is clear that Seoul Semiconductor has not infringed on the patent (no 406201). Seoul Semiconductor has patent technologies as below and has not infringed on the patent above.

Over the years, Seoul Semiconductor has made significant investments in research and development, and has filed and registered more than 1,200 patents technologies on its own. Seoul Semiconductor produces and sells products based on its own patent technologies, as well as from patent technologies it licenses from prestigious universities, institutes and companies including the University of California at Santa Barbara and the Solid State Light Display Center in the US, and Nitride Semiconductor in Japan. In addition, Seoul Semiconductor has entered cross-licensing and strategic cooperation agreements with leading LED-chip producers including Cree Inc. in the US, OSRAM GmbH in Germany and Toyoda Gosei in Japan.

Seoul Semiconductor also announced its strong response to a lawsuit filed by Nichia Corporate against the company in Seoul Central District Court today. The suit alleges that Seoul Semiconductor's blue chips for Z-Power LED P9 Series white LED products infringe on Nichia's Korean patent (no. 491482). Nichia seeks damages for past infringement as well as an injunction against any further infringing activity.

Reiterating an earlier announcement on May 18, 2007, Seoul Semiconductor responds that only a small amount (US$2,000 worth in 2007) of its Z-Power LED P9 was produced and sold in Korea using blue chips manufactured by the Boise, Idaho-based SemiLEDs Corporation. This occurred before Seoul Semiconductor’s started using blue chips from Cree in its P9 LEDs. SemiLEDs Corp. is proceeding with the P9 lawsuit in Japan where it is represented by Ohno & Partners. Seoul Semiconductor will cooperate with SemiLEDs Corp. on this lawsuit.

Seoul Semiconductor’s is an ardent supporter and proponent of the importance of intellectual property laws to encourage technological innovation and advancement. Seoul Semiconductor has consistently demonstrated that it takes its responsibility to respect and recognize the intellectual property rights of others very seriously. There is no evidence to support Nichia’s claim and attempt to disrupt business at Seoul Semiconductor. As part of its duty to represent the interest of its shareholders and customers, Seoul Semiconductor will defend itself against unsubstantiated attacks from Nichia.

About Seoul Semiconductor:
Seoul Semiconductor is the largest LED lighting solutions manufacturer in Korea, and eighth-largest in the world according to Strategies Unlimited. Seoul Semiconductor has been named to Forbes' and BusinessWeek's lists as one of the most promising Asian companies. Its product, Acriche, was recently named as "Product of the Year 2006" by Elektronik, one of the most prestigious electronics magazines in Europe. Seoul semiconductor's primary business areas are LED packaging and custom module manufacturing. It provides a full range of LED products including AC-driven semiconductor light source, Acriche, High-brightness Power, Side View, Top, Chip, Lamp and High Flux LEDs, and custom type modules. Applications for the company's LED products include general lighting, signage, back lighting for mobile phones, TVs, notebook computers, automotive lighting, home appliances, signals, etc. Seoul Semiconductor reported US$200 million in sales in 2006. It has 1,251 patents and 100 licenses as of June 30, 2007. Seoul Semiconductor has 3 overseas corporate offices and 13 branches. Its products are also represented worldwide by more than 90 distributors.

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