"Going out to sea" patent litigation continues to be used by domestic enterprises "lightning protection"

With the emergence of litigation cases, patent warfare has become the normal phenomenon of competition among LED companies at home and abroad.

Recently, "Daily Economic News (blog, Weibo)" reporter learned that Sunshine Lighting (600261) was sued by the American company Archipelago Lighting Inc (hereinafter referred to as ALI), the other side believes that Sunlight supplies the Kichler brand LED products to Lloyd's. Illegal use of ALI's after-sales phone, also suspected of copying the outer packaging of its products.

The trouble with sunlight lighting is not an isolated case. According to the reporter's incomplete statistics, in the first half of 2016 alone, there were as many as 15 well-known LED patent litigation cases, and most of them were transnational lawsuits.

A number of industry insiders analyzed that domestic LED companies as a rising star continue to seize the foreign LED market, patent litigation will be one of the ways for foreign LED companies to confront. If domestic companies want to avoid risks, they can cooperate with foreign local LED companies in addition to applying for new LED product patents.

Patent litigation or normalization

"Daily Economic News" previously reported that the US Lighting Science Group sued the Weiwei shares (300317, SZ) on July 11 to the local court, arguing that an LED downlight used by Yan Wei shares infringed on it. patent. Zhang Xiaofei, director of the High-tech LED Industry Research Center, said, "The operation of the American Lighting Science Group is not very good. There is a certain relationship between the initiation of patent infringement lawsuits."

Zhang Xiaofei believes that although the growth rate of domestic LED enterprises' exports has declined in recent years, with the advantage of low cost, the market penetration rate in developed countries like the United States has been rising, and the competition among local LED companies is fierce. So they started litigation against intellectual property rights in Chinese companies.

An international LED company director believes that the low cost of domestic LED companies is because they are directly produced on the basis of foreign original technologies. Many of the results do not need to be developed by themselves, but the patented enterprises actually pay their brains.

Zhang Xiaofei said that because the prices of products produced by domestic LED companies are relatively low, foreign LED companies will increase their patent protection and patent litigation in the face of pressure on foreign LED companies.

Can acquire and apply for new patents

Domestic LED companies that have always won by cost advantage now want to explore the international market, cooperate with foreign LED companies through mergers and acquisitions, or apply for new patents through research and development, which will help avoid the troubles of patent litigation.

An international LED company director believes that intellectual property rights must be respected. The development of LED enterprises cannot be at the expense of infringing the intellectual property rights of other enterprises. Otherwise, enterprises are not far away. LED companies that are bigger and stronger must definitely have Your own intellectual property and core technology.

However, in the current situation of brutal fight between LED companies, the long-term development and application of LED patents by enterprises cannot meet the needs of many domestic LED companies to expand overseas.

M&A overseas is a relatively short-term approach. According to a report by the "Daily Economic News" reporter, Mulinsen (002745, SZ) (002745, SZ) and other acquisitions of OSRAM's independently operated lighting business company - LEDVANCE, acquired on July 26 The price is over 400 million euros.

It is worth noting that Mulinsen and the IDG Capital and Yiwu State-owned Assets Operation Center formed a company called Harmony Mingxin Limited Partner (hereinafter referred to as LP) to complete the acquisition of OSRAM Lighting. Lin Liming, executive general manager of Mulinsen, said earlier that the acquisition of LP was based on the large amount of acquisitions and the lack of experience of Mulinsen's cross-border M&A, so he combined IDG capital with investment experience.

The problem that is highlighted is that when capital enters overseas markets, the requirements for M&A experience and capital size are very strict. Zhang Xiaofei said that the domestic LED enterprise exports, they need the corresponding channels, if the acquisition of foreign companies, you can get the corresponding patents and channels, which includes the brand's premium.

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