IP, Reports & Roadmaps | Jan 07, 2008

Patent Dispute - Next Round: Seoul Semiconductor filed a defamation lawsuit against Nichia

Seoul Semiconductor announced today that it has filed a defamation lawsuit against Nichia Corporation for Nichia’s false statements about N.D. Cal Case (“Design Case”) with Central District Court in Seoul, Korea. Seoul Semiconductor’s suit against Nichia, filed on January 7, 2008, seeks compensation for damages for defamation in the amount of 0.5 billion Korean won (approximately US$531,000).

The product, which Nichia has insisted in the US design patent lawsuit that is infringing on its patents is limited to the model number 902. The model number 902 is one of side view LEDs at 0.7 mm of thickness for backlights for LCDs of mobile phones, etc. The discontinuation of the product has already been announced to the public.

Seoul Semiconductor has endured, thus far, Nichia’s false and misrepresenting statement and libel, which are not the very heart of the patent issue. Seoul Semiconductor has finally concluded that the only way to deter on-going false statements from Nichia and to uphold the truth is to file a lawsuit, which would show Seoul Semiconductor’s firm resolution.

Last year Seoul Semiconductor sent a courtesy letter to give Nichia an opportunity to correct the false statements. However, instead of correcting its wrongful activities, Nichia replied by filing a defamation lawsuit against Seoul Semiconductor on December 28, 2007.

Nichia, at the beginning, claimed the payment of damages for the amount of millions of dollars in the US design patent lawsuit. Here are examples of false statements that Nichia has made to the public:

1. “$250 damage award rather than $62” (Untrue);
2. “The injunction will ban the sale of 902 LEDs and any other Seoul products that infringes Nichia’s patents”(Untrue).

Seoul Semiconductor cannot get along with Nichia’s false and wrongful activities anymore. Seoul Semiconductor is taking any and all necessary steps to prevent Nichia from further distortion of the truth to the public.

As a world leading company, Seoul Semiconductor strongly believes that a company’s success relies on its morality and integrity. Regardless of Nichia’s behavior, Seoul Semiconductor will continue to fulfill its duty as a public company, to conduct business in a forthright and honest manner, to protect the interest of its investors and to provide a better value to the world.

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