Korean Intellectual Property Office rules that Korean firm, Baron Tech Co., Ltd., has won its "Design Patent Invalidation" trial against a top global LED company Nichia, reestablishing sound market competition in the LED industry.

Seoul Semiconductor, the number one Korean LED supplier and one of the top 10 LED companies in the world, stated that the Korean Intellectual Property Office's decision of invalidation of Nichia's eight design patents in Korea reestablishes fair market competition in the LED industry and strengthens Seoul Semiconductor's presence in the back lighting LED industry. The patent-invalidated product is a side-view, white LED, which has been used in LCD back lighting for mobile phones, PDAs, digital cameras, and navigation devices. Using its patent, Nichia has been annually supplying approximately $0.2 billion of these side-view LEDs to major Korean customers.

In commenting on the case, Baron Tech CEO, Myung Hwan Lee said: "Nichia has been threatening other LED companies around the world and filing lawsuits about patent infringement to interrupt companies from entering into the market and to retain its monopoly position. However, KIPO's patent invalidation judgment will put a stop to Nichia's inappropriate actions."

Soo Wan Lee, AIP Patent & Law Offices Senior Attorney, who has been in charge of the Baron Tech trial, said: "The basic requirement for design patent is ornamentality or functional elegance. Nichia's design patents do not meet this ornamentality requirement. Yet, Nichia has been sending letters of warning to many of the world's LED firms, alleging that they have infringed upon Nichia's design patents."

The invalidated patent in this trial has the same design as the claim patent for which Nichia had filed a lawsuit against Seou Semiconductor last January in the U.S. with the District Court of Northern California. The Nichia patent invalidation is expected to have a very positive effect for SSC on the result of U.S. lawsuit. It is also anticipated that U.S. court will bring up the question of whether Nichia's design patent is valid.

Dae Hyun Jang, a legal team leader of SSC, said: "Most importantly, this trial will help put a halt to Nichia's aggressive omni-directional attacks on other LED companies, which quells unrest of both domestic and overseas customers and leads to the sound market competition."