The ED core patent barrier is like a Damocles sword hanging over the Chinese LED industry. Since core patents are controlled by overseas manufacturers, Chinese companies are at risk of patent infringement at any time. More than 60% of China's LED companies are sold in overseas markets such as Europe and the United States. Since the core patent technology of LED has been monopolized by European, American and Japanese manufacturers, many Chinese companies have encountered patent litigation overseas, and most of them have received compensation for settlement.
It is understood that the demand for LED in the Japanese market is extremely large, but the Chinese brand has little involvement. One of the important reasons is that Japan’s investigation of patent infringement is extremely strict, forcing Chinese companies to take the initiative to give up this market. At the same time, overseas companies have stepped up their efforts to enter the Chinese market. For example, CREE and Xuming have established factories in China, and Nichia has plans to establish production plants in China to expand its product line coverage. In order to solve the problem of technical barriers for domestic LED patent pools, after years of efforts, Shenzhen has established the first LED patent pool in China. LED companies will be in an increasingly advantageous position in the protection of intellectual property rights and the development of international markets.
According to reports, the patent pool is to integrate many patents of patent holders to achieve cross-licensing and mutual licensing. After the LED patent pool is completed, it can not only maintain the share of Chinese LED companies in the domestic market, but also help companies to win foreign markets through patent licensing. When Chinese LED companies have strong enough patents, they can even license patents with overseas manufacturers and even make Chinese LED products enter the foreign market. This is also the most effective way to resolve patent infringement between companies.