Nichia filed the lawsuit in June 2004, alleging the LED products sold by Luxpia infringed Nichia's Korean patent number 992103. Nichia demanded that Luxpia should stop selling the infringing LED products.

The two companies have now reached a settlement, as part of which Luxpia placed apology advertisements in two of the major industrial papers in Korea (The Electronic Times and Mail Business Newspaper) on May 24, 2005.

Nichia withdrew its patent infringement claims against Luxpia on May 31, 2005. The company says that it will take "necessary measures" to protect its intellectual property rights against any infringing companies in any part of the world.