Toyoda Gosei and Epistar’s Signing a LED Cross License Agreement Paves the Way for Taiwan as the Top LED Manufacturer.

The global Japanese leading LED manufacturer, Toyoda Gosei and Taiwan’s leading LED-chip provider, Epistar Corporation entered a cross license agreement concerning LED patents in September, which allows the two companies to use each other’s specific LED technologies.  Epistar is the first and the only company that obtains cross license from Toyoda Gosei.

It is stated in Epistar’s press release that Epistar has been the first LED chip maker in Taiwan that obtains cross license from Toyoda Gosei, which shows Epistar’s unmatched patent technologies and commercial positioning have been positively and globally recognized.  The cross licensing will make Toyoda Gosei-Epistar relationship closer and more partner-oriented and will also enhance Epistar’s competitiveness.

The LED industry hails Epistar’s achievement as a significant progress of the whole Taiwan LED industry.  Also, cooperation between the two companies provides them with mutual respect and frees them from serious concern about vulnerability to patent lawsuits.  It also drives the global LED industry to go on in positive direction.  On the other hand, the EU will drop ban on use of incandescent light bulbs from 2012, and the phase-out of incandescent light bulbs will on the contrary marks the rise of LED lighting.  Toyoda Gosei and Epistar may work together to integrate their technologies and cut prices of LED light bulbs.  Toyoda Gosei has cooperated only with world’s top manufacturers, such as, Cree, Lumiled, Nichia, and Osram.  Now, Epistar’s cooperation with Toyoda Gosei foretells its future positioning as one of the world’s top LED makers.

Taiwan is the second top manufacturer of LEDs in the world, after only Japan.  However, most of the core LED-related patents are held by Nichia, Toyoda Gosei, Cree, Lumileds, and Osram, which stands a sale obstacle to Epistar in specific markets (such as Japan) or causes price differences.  For example, the price of purchase of LED chips from Toyoda Gosei is 30% to 40% more than that from Epistar.  Now, the cross licensing enables the downstream suppliers to purchase LED chips at more competitive prices.  It is expectable for Taiwan LED industry that Taiwan will become the world largest LED maker.

Epistar’s cooperation with the world’s top five LED makers
Toyoda Gosei	Cross license of LED-related patents, which will lead to Epistar’s launch into Japanese TV and lighting markets
CREE	Purchase of red LEDs from Epistar
Nichia	Purchase of red LEDs from Epistar
Lumileds	AlGaInP LED patent license (red and orange)
Osram	OEM

(2010.09)
/CCS