LED chip maker Epistar Corp (晶電) signed a cross-licensing agreement with Japan-based Toyoda Gosei Co on Thursday.
Epistar has served as an original design manufacturer (ODM) service provider to Toyoda.
“Cooperation between the two companies will expand from ODM services and become closer than ever,” Epistar vice president Rider Chang (張士賢) said.
Chang said the pact showed that the patents held by Epistar are sophisticated enough for Toyoda to want to work more closely with the company.
Toyoda is among the five major LED patent holders in the world. The four others are Nichia Corp, Cree Inc, Philips Lumileds Lighting Co and OSRAM.
Chang said Taiwanese LED firms have long been haunted by patent disputes and the Toyoda deal should lower Epistar’s concerns over possible patent infringement.
Litigation has cost the local LED sector dearly and consumed much effort that should have been used in research and production, Chang said.
“Aided by Toyoda’s patents, Epistar is expected to make its better products by improving the luminosity of LEDs, and Toyoda is expected to reap similar benefits,” Chang said.
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