IP, Reports & Roadmaps | Sep 17, 2007

NICHIA ANNOUNCES EXPANDED PATENT CROSS LICENSE WITH CREE AND FILES LAWSUITE AGAINST SEOUL SEMICONDUTOR LTD IN KOREA

Nichia Corporation today announced that Nichia and Cree, Inc. (Nasdaq: CREE) have entered into an agreement that expands their cross license arrangements announced in 2002 and 2005 to include additional patents relating to white LED technology and certain Cree patents relating to nitride lasers. At the same time Nichia filed a lawsuit in the Seoul Central District Court against Seoul Semiconductor Co., Ltd. ("Seoul Semiconductor") for infringing Nichia's patent.

The agreement also resolves infringement claims Nichia had asserted against LED products sold by COTCO International Limited, a subsidiary of COTCO Luminant Device Limited, prior to Cree's acquisition of COTCO Luminant Device Limited and its subsidiaries in March 2007.

Additionally, Nichia announced that Nichia and Cree have agreed to resolve any future patent disputes involving products of either company, or any affiliate in which it owns a controlling interest, through a process that eliminates any potential impact on customers. Customers may therefore purchase either Nichia or Cree products free of any concern that Nichia or Cree will make a claim of patent infringement against the customer based on the purchased product.

Other terms of the expanded cross license arrangements were not disclosed but are not expected to have any material financial effect on either party.

Nichia Files Patent Infringement Lawsuit against Seoul Semiconductor Co. Ltd. over White LEDs in Korea
The suit alleges that Seoul Semiconductor's top-view type white LED products (part no. TWH104-HS) infringe Nichia's Korean patent (no. 406201), and Nichia seeks damages for past infringement as well as an injunction against any further infringing activity.

A lawsuit against Seoul Semiconductor in the United States based on Nichia's design patents for side-view type white LEDs, and a lawsuit against Seoul Semiconductor and its distributor, Kyoei Sangyo, in Japan based on Nichia's patents for lighting LEDs are currently pending. In these lawsuits, Nichia is seeking damages for past infringement as well as an injunction against any further infringing activity.

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