The dispute between the two companies began in February 2008, when Philips filed a patent infringement action against LSG in federal court in Massachusetts. That case is in the discovery stage.
Subsequently, in March 2008, LSG filed a complaint in the Superior Court of California, County of Sacramento alleging, among other things, that Philips had misappropriated confidential information and engaged in unfair trade practices.
For more background on the dispute, see the news article Philips files LED patent lawsuit against Lighting Science Group (Mar 2008) on our website, and our editorial in the April 2008 issue of LEDs Magazine (page 4).
There have been developments in the case filed by LSG. On September 4, 2008, in response to LSG's motion for a preliminary injunction to prevent Philips from further harming LSG, the court issued a ruling in LSG's favor (according to an LSG press release).
In reaching its decision, the court indicated that LSG is likely to prevail on the merits of its case and stated that "the evidence shows that defendants [Philips] likely obtained confidential information during its relationship with plaintiffs [LSG]..."
Following oral argument, the court affirmed its tentative ruling and instructed the parties to submit a proposed order setting forth the terms of the injunctive relief provided to LSG by the court. Proposed orders have been submitted to the court by LSG and Philips. A copy of the decision is available from the Sacramento Superior Court of California.
Further patent lawsuits have also been filed. Early in the week beginning September 22, LSG filed an action in federal court in California to declare a patent owned by Philips invalid and not infringed. Philips has not yet filed an answer in that case.
Subsequently, on September 26, Philips filed a patent infringement action in federal court in Massachusetts. LSG has not yet filed an answer.
"We are confident that LSG will prevail in each of these actions and that the lawsuits will not interfere with our business," said John Mitchell, General Counsel of LSG.