EMCORE Announces Settlement and License Agreement Relating to Patent Infringement Lawsuit Brought by Nichia Corporation

Date Announced: 23 May 2014

Emcore to pay Nichia damages relating to Japanese firm's dispute with Everlight.

ALBUQUERQUE, N.M., May 23, 2014 (GLOBE NEWSWIRE) -- EMCORE Corporation (Nasdaq:EMKR), a leading provider of compound semiconductor-based components and subsystems for the fiber optics and space solar power markets, announced today that it has settled the patent infringement case brought by Nichia Corporation before the U.S. District Court for the Eastern District of Texas.

In November 2011, EMCORE exclusively licensed several of its non-core LED patents to Everlight Electronics Co., Ltd., a Taiwanese LED company. In April 2012, Everlight filed suit against Nichia Corporation alleging infringement of EMCORE's U.S. Pat No. 6,653,215 ('215) it licensed.

Because EMCORE still owned the '215 patent, the complaint named EMCORE as a mandatory co-plaintiff. The suit, however, is principally a dispute between Everlight and Nichia.

Following a petition initiated by Nichia, on February 11, 2014, the U.S. Patent and Trademark Office issued a Final Written Decision in which it found all claims of the '215 Patent to be unpatentable. In March 2014, Nichia and Everlight agreed to dismiss the claims pertaining to the EMCORE '215 patent from the lawsuit without prejudice.

In June 2013, Nichia filed a complaint against EMCORE before the U.S. District Court for the Eastern District of Texas alleging infringement of Nichia's U.S. Pat No. 7,295,587 ('587) entitled "Semiconductor Laser Having Optical Guide Layer Doped for Decreasing Resistance."

The current settlement agreement resolves the Eastern District of Texas lawsuit regarding the '587 patent. Under the settlement, EMCORE acknowledges the validity of the '587 patent, and makes a payment of damages to Nichia and Nichia agrees to grant EMCORE a non-exclusive, royalty-bearing license to the asserted patent. The details of the settlement agreement are confidential.

"We greatly respect Nichia's intellectual property and feel this settlement and license agreement is proof of that," said Alfredo Gomez, EMCORE's General Counsel.

Source: Emcore

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