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Home> Industry Information> Philips OSRAM and other five LED giants join forces to build LED patent barriers

Philips OSRAM and other five LED giants join forces to build LED patent barriers

May 30, 2018

Cree and Osram announced that they have signed a comprehensive global patent cross-license agreement. The agreement covers patents in the fields of blue LED chip technology, white LED, fluorescent powder, packaging, LED bulb lamps, and LED lighting control systems.

The mutual grants of patent giants have become part of their global strategy. The current key technologies in the upstream are almost monopolized by them. This undoubtedly left an awkward situation for Chinese companies.

These transnational giants who are keen on patent lawsuits have no plans to sell key technologies. Under the protection of the patent containment policy, they can easily complete the pre-deployment of market channels in China. Such as breakthroughs in market segments and market opportunities. What's more, compared to Chinese companies in their infancy, the current channel advantages of companies such as Philips are already very prominent.

The Big Five Joins Hands with Patent Barrier Prior to the single agreement between Cree and Osram, Cree has reached a patent agreement for LED technology with Nichia and Toyoda Gosei. At the same time, it recently announced that it has signed a similar cross-license agreement with Philips. At the same time, OSRAM also stated that it has completed the global patenting with Nichia Chemical, Toyota Synthesizing and Philips.

At this point, the world's top five LED giants have basically completed the mutual grant of patents.

OSRAM said that they currently hold about 8,000 patented technologies. Martin Goetzeler, chief operating officer of OSRAM, publicly stated: "The patents granted by companies with intellectual property rights will be conducive to the smooth development of the LED market."


Taiwanese manufacturer Crystal Electric Co., Ltd. signed a cross-licensing authorization with Toyota in last year. A joint venture subsidiary, Fengjing Optoelectronics, has begun shipments in a small quantity recently.


OSRAM also believes that the agreement will protect the patents of OSRAM and Cree customers and avoid potential patent disputes. This agreement is expected to accelerate the development of LED technology in various application areas; at the same time, it will mitigate the risk of accidental infringement of the patent rights of other companies.

Cree President and CEO Chuck Swoboda stated that Cree has been focusing on LED lighting technology. Through this agreement, it can better serve customers and further accelerate the LED lighting revolution.

The blockade of patents jointly created by the five giants has long been not the city of the day. In addition to joining forces, they also have their own areas of retention.

Another key player in the patent containment is Nichia Chemical. LED with GaN as the material, Nichia Chemical is still the main supplier. Due to a large amount of patent protection, GaN technology has almost become a monopoly asset of Nichia Chemical. Although current giants are carrying out certain cross-licensing, the white-light part of Nichia's chemical industry is still not developed.

Osram is in addition to Nichia Chemical, the stronger the strength of the development of white LED earlier. Although there is still a certain gap in luminous efficiency, Asian companies such as Taiwan still tend to seek technical authorization from OSRAM because of Nichia's technical blockade policy.

The above five major manufacturers have different technologies and products. Nichia Chemical and Toyota Synthesizer have formed a complete LED industry chain. Cree has its own mature technology system, and only focuses on epitaxy and chip manufacturing; Lumileds pays more attention. The research and development of high-power LEDs is very strong in the field of white lighting.

Targeting Segments In addition to high brand recognition and technological advantages, Philips has a very sound distribution channel. “Our distribution channels in the first- and second-tier cities are very sound. This is one of Philips’ main advantages,” said Hu Xiaohong, Philips Public Relations and Green Market Manager.

These giants undoubtedly have matured sales channels in China, but at present, their goals appear to be larger market segments such as entertainment lighting, sports lighting, and agricultural lighting than the general lighting market.

In 2007, Philips fully acquired LTI, a manufacturer of high-intensity Xenon lamps for the entertainment industry in the United States. According to statistics, LTI was established in 1999 and is a leading supplier of cinema lighting in the United States. In the previous four years, LTI's sales increased by about 40% annually.

At that time, Jefft, chief executive of Philips' special light source division, said that the acquisition will help Philips to enter the stage of entertainment lighting market with better economic benefits, thus consolidating Philips' competitive position in the lighting field in North America.

By 2010, Philips Entertainment Lighting has owned brands such as Vari-Lite, Strand and Selecon. On December 6, 2010, Philips announced the acquisition of privately-held company, Jialishi (Group) Co., Ltd.

The company is headquartered in Hong Kong, China and has a production base in mainland China. Philips said in the news release that the company is a designer, manufacturer and distributor of leading LED, traditional entertainment lighting and lighting control solutions in the global market.

It is not only Philips that focuses on the market segments. OSRAM, one of the giants, has launched the BrilliantMix solution and has been committed to attacking the agricultural market in Taiwan, focusing its LEDs on the application of plant lights.

Taiwan OSRAM related sources said that BrilliantMix solutions can increase the luminous power of about 6%, and can extend the life of LED lamps.

It is understood that there are more than 50,000 OSRAM Golden Dragon Plus in Danish flower farms. Compared with traditional plant lighting, it has achieved nearly 40% energy-saving effect, and can reduce the use of chemical growth agents. The number of flower buds has also increased significantly.

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