Both JM Group and ASP had purchased LEDs or products that contain LEDs from different Asian makers. The two distributors were selling these products without knowing of the infringement of Nichia's patents.
JM Group had initially denied infringement and the dispute was brought to the Federal Court. JM finally acknowledged Nichia's contention and the parties settled to pursue a good business relationship.
ASP opted for an early settlement with Nichia, avoiding a lawsuit. Both parties agreed to establish a good business relationship. According to ASP, the Asian LED maker had misrepresented itself and said that it had actually licensed Nichia's patents, which was not the case.
Nichia has been actively pursuing its patent enforcement strategy and has been demanding that those who have sold products infringing Nichia's US patents stop selling such products. The two deals are the result of its enforcement action plan.
Nichia says that it "continues to watch over the market for infringing products and to take necessary actions to keep those who manufacture such products out of the market."