Epistar denied stay of exclusion order in patent case

Oct. 3, 2007
Epistar is appealing the ITC's decision to grant an exclusion order on some of its LEDs. But until the appeal is heard, the exclusion order will be enforced.
*** Company press release from Philips Lumileds

The United States Court of Appeals for the Federal Circuit has denied Epistar's request to stay enforcement of the U.S. International Trade Commission's (ITC's) limited exclusion order prohibiting importation of Epistar's OMA, MB, and GB products into the United States.

The ITC earlier denied a similar request by Epistar. The Federal Circuit's decision clears the way for U.S. Customs and Border Enforcement to enforce the limited exclusion order.

The exclusion order prohibits importation of Epistar's infringing OMA I, OMA II, MB I, MB II, GB I, and GB II LEDs, as well as any other Epistar LEDs that infringe Philips Lumileds' U.S. Patent No. 5,008,718.

The exclusion order also prohibits the importation of packaged LEDs containing the infringing Epistar LEDs and boards consisting primarily of arrays of such packaged LEDs.

Companies that use, import, or sell these unlicensed infringing products, even unknowingly, are direct infringers of Philips Lumileds' patent and subject to the exclusion order.

In denying Epistar's request to stay the exclusion order, the Federal Circuit, concluded that Epistar did not meet the key criteria, such as "likelihood of success on the merits" of its appeal or the demonstration of "a substantial case on the merits." to obtain a stay.

This ruling by a three-judge panel of the Federal Circuit reinforces Philips Lumileds' confidence that the appeals court will ultimately agree with the ITC's findings of infringement and reject Epistar's appeal.

Philips Lumileds also has a pending action in U.S. District Court for the Northern District of California, in which it is asserting its patent rights against Epistar and seeking both damages and an injunction.