Philips introduces licensing program for LED-based luminaires

Philips is offering around 1000 patents related to LED luminaires, and will charge licensing fees such as 5% of net selling price for color-changing luminaires.

Jul 2nd, 2008
On June 30, Philips introduced a patent licensing program for LED-based luminaires used in the general illumination, architectural and theatrical markets.

Philips has pulled together a list of about 1000 patents – including those originally filed by Color Kinetics - that it says address the basic control technologies required in a broad range of LED lighting applications.

The company says that its policy to share its IP for LED-based luminaires through licensing will "open up the potential of new LED lighting solutions to companies and consumers. By providing access to our patented technologies we give other companies the possibility to enter into new and promising markets."

Philips also said that the new program extends the former Color Kinetics licensing program "to enable faster growth of the Solid State Lighting market."

Since Philips acquired Color Kinetics in summer 2007, there has been speculation regarding the way in which Philips would approach the market with its IP portfolio – see Philips to buy Color Kinetics in $791 million deal.

The answer is that the Color Kinetics patents have been combined with a vast array or relevant Philips IP, all of which is listed in a 17-page PDF document. A quick scan suggests this contains about 1000 patents.

The PDF list of IP offered by Philips can be downloaded on the pricing information section of Philips' website, which includes the following price list:

Royalty Rates by category: (*)
Single Color luminaire: 3% of net selling price
Tunable White luminaire: 4% of net selling price
Color-Changing luminaire: 5% of net selling price

(*) Royalties will be charged on a country by country basis to the extent that patent coverage for the specific product feature is present for that country.

Rudy Provoost, CEO of Philips Lighting said: “We are facing a market for LED luminaires that is growing more than 30% per year. This year we already see the entrance of LEDs in functional general lighting in many market segments. LEDs mark a new era of light, it is more than just switching on light. It can create beautiful atmospheres, enhance peoples’ mood, while saving energy through efficiency.”

“Having the technology is just one part of unlocking the potential of LED–based lighting. By licensing our technology we are able to open up the full potential of new LED lighting solutions to companies and consumers, helping the Solid State Lighting market to grow,” adds Ruud Peters, CEO of Philips Intellectual Property & Standards.

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