South Korea’s Seoul Semiconductor Wins Patent Infringement Case Against Dutch Manufacturer, Signify

Dutch multinational lighting firm Signify has lost a patent infringement case filed by South Korea’s Seoul Semiconductor. Ruling on the Signify patent infringement case, a German court ordered the recall and destruction of specific products manufactured and sold by the lighting manufacturer since March 2017, as per Reuters.

Stringent Fines

The German court ordered Conrad Electronic, which is one of Signify product distributors to effect the ruling. The distributor was also ordered to cease the sale of all affected products. A statement released by Seoul Semiconductor shows that violation of the ruling will attract a fine of up to $259,925 for each order violated.

Signify, a Netherlands-based company formerly traded as Philips Lighting. During the Signify vs. Seoul Semiconductor lawsuit, the company argued that the patents in question had already expired and that it had commenced legal action to prove their invalidity.

But Seoul Semiconductor said it invests about 10% of its annual revenue on research and development. The South Korean manufacturer said it has over 18,000 patents in light-emitting diode technology. Signify is the largest lighting manufacturer in the world.

Fair Market

Seoul Semiconductor has been focused on producing clean, beautiful, and healthy lighting for over 30 years. To shift from artificial to natural lighting, the company has been investing close to $100 million each year. According to the company, Seoul Semiconductor’s legal action was aimed at creating a fair market and enhancing innovation.

“Infringement of intellectual property causes frustration among young entrepreneurs and innovative companies. Our investment in preventing technology theft helps to create a fairer market and encourages young people and companies around the world to continue innovating, helping all of us contribute to a better world. This aligns with one of our company’s three core missions – honor, trust, and contribution,” Seoul Semiconductor Founder and CEO, Hung Hoon Lee said.

The Ripple Effect

The Seoul Semiconductor lawsuit relates to the main technology that is used to achieve color rendering 70 or higher. This is the light color applied to automotive and home lighting products, backlights, and IT flashlights.

With the effects of the ruling being applicable to all products that infringed on the patented technology, the recall order is expected to have a ripple effect on a wide market range.

It is expected that markets worth more than $10 billion of packages and $100 billion of finished products across IT, automotive, and lighting sectors will be affected by the Signify product recall order.