MOEA to Push Formation of LED R&D Alliance Taiwan

In light of the upcoming sales boom in the LED (light emitting diode) industry, the Ministry of Economic Affairs (MOEA) is going to push for formation of an LED R&D alliance to assist Taiwanese LED manufacturers to obtain cross-licenses from patent possessors in the US, Japan and Europe to reduce patent infringement risks in the future, according to official resources.

Increasing popularity of LED applications, such as backlights for display panels and lightings, is expected to fuel the global LED industry starting in 2010, driving a number of Taiwanese manufacturers to actively carry out output expansion and seek cooperation with foreign partners to explore the forthcoming business opportunities.

However, industry insiders note, they will likely encounter patent infringements more easily and spend more on royalty fees than before, mainly because world`s top five LED developers, namely Nichia, Toyota Gosei, Cree, Philips and Osram, have already reached cross-patent agreements with each another to further protect their inventions and, above all, make big money by charging royalty fees for use of their LED technologies.

Taiwanese makers in industries of optical discs, display panels and DRAM have been plagued by either patent infringements or enormous costs on patent licenses for years. For example, Taiwanese DRAM makers pay total royalty fees of over NT$20 billion a year, heavily eroding their operating performances.

Therefore, the MOEA will kick off its plan to form an LED R&D alliance by the end of December and expects the alliance to be activated in the first half of 2010. Accordingly, Economic Minister Shih Yen-Shiang has directed officials in Department of Industrial Technology, Industrial Development Bureau and government-funded Industrial Technology Research Institute to work out strategies to help Taiwanese LED makers fend off intellectual property infringements.

Source: CENS