Cree and SemiLEDs end LED patent litigation

June 27, 2012
Cree has prevailed in its LED patent dispute with SemiLEDs, with the latter company agreeing to an injunction preventing sale of the offending LED products from October, as well as paying damages.
Two rival LED makers, Cree, Inc. (Nasdaq: CREE) and SemiLEDs Corporation (Nasdaq:LEDS), have agreed to end their respective patent infringement litigation against each other.

Cree appears to have prevailed in the dispute. As part of the settlement, SemiLEDs has agreed to make a one-time payment to Cree for past damages.

SemiLEDs also agreed to an injunction, effective October 1, 2012, that prohibits the importation and sale of SemiLEDs' accused products in the United States.

The parties have agreed to withdraw the remaining claims. This is without prejudice to the right of both parties to assert their respective claims in the future.

“The resolution emphasizes the breadth and importance of Cree’s patent portfolio and its determination to ensure that Cree’s intellectual property rights are respected,” stated Julio Garceran, chief intellectual property counsel, Cree.

In April 2011, Cree filed a complaint against SemiLEDs in North Carolina. This claimed infringement of six US patents owned by Cree: no. 7,737,459, no. 7,211,833, no. 7,611,915, no. 6,657,236, no. 7,795,623, and no. 7,557,380.

Cree said that SemiLEDs has infringed each of the above patents by offering for sale, selling, using, and/or importing LED chips and LED components, including those under the product family name MvpLED.

In August 2011, SemiLEDs filed a complaint against Cree in Delaware. This alleged infringement by Cree of US patents no. 7,615,789, no. 7,646,033 and no. D580,888.

"The conclusion of the disputes between SemiLEDs and Cree will allow us to now focus our full resources on developing our business and serving our customers. We continue to innovate and are introducing to the market an exciting, new line of LED products," said Adam Lin, VP of Business Development and General Counsel of SemiLEDs Corporation.