Intellectual property rights cause industrial crisis enterprises how to break through foreign LED patent containment

“Although the number of LED patent applications in mainland China has increased significantly in recent years, the number of applications has surpassed that of the United States in the world, but China’s position in the global LED intellectual property landscape has not been fundamentally improved. On the contrary, due to the lack of core patents. The issue of LED intellectual property rights is becoming a bottleneck restricting the development of China's LED semiconductor lighting industry. The homogenization competition caused by intellectual property issues is becoming more and more fierce. The problem of lack of industrial ownership is becoming more and more serious, and the risk of trade friction is also increasing."

Recently, Dr. Zhang Wei from the Institute of Electronic Information Industry of the CCID Research Institute of the Ministry of Industry and Information Technology pointed out that how to break through the LED patent containment of foreign companies and resolve the industrial crisis caused by LED intellectual property rights is a key issue in the development of China's LED semiconductor lighting industry.

LED industry homogenization competition is intensifying

"LED intellectual property issue is like a 'lijian' hanging on the LED industry in China, and it is possible to fall at any time. The intellectual property issue is related to the sustainable development of the entire LED industry. If it cannot be properly solved, it may trigger a series of Industrial crisis.” Zhang Wei pointed out that the domestic LED product market has already experienced homogenization competition, and the imperfect intellectual property protection system and the weak intellectual property rights concept are the main reasons.

Through investigation, they found that the homogenization competition in the domestic LED market is mainly reflected in the middle and downstream links of the LED industry chain. The technical thresholds of the middle and lower reaches are relatively low. The structure and shape of the products are easy to imitate. The manufacturers chasing short-term interests cause low-quality and inferior products to flood the market through simple plagiarism, disrupting market order and impeding the promotion of quality products.

"Behind the homogenization competition is the weak ability of enterprise technology innovation and design innovation." Yu Ming, a researcher at the Electronic Information Industry Research Institute of the Ministry of Industry and Information Technology, pointed out that in terms of technological innovation, high-end products of domestic enterprises use a large number of foreign chips, resulting in products. The performance and price converge, while the middle and low-end products are seriously copied, and there is a lack of technological innovation. In terms of design innovation, product design and structural design infringement costs are low. It takes a lot of time and capital investment for an innovative company to design a new product. Once the product is recognized by the market, some small factories will soon copy it. Then sell at a low price and quickly achieve economic benefits.

The lack of industrial dominance is becoming more and more prominent

"The patents of foreign companies have caused domestic enterprises to survive in the cracks. The development of domestic LED enterprises is seriously constrained by intellectual property issues, which will lead to the increasingly prominent crisis of industrial ownership." Zhang Wei stressed.

According to the introduction, Japan's Nichia Chemical Company, Toyota Synthetic Company, American Cree Company, Philips Lumen Company and Germany's Osram Corporation and other five LED multinational companies use their core patents to adopt horizontal (simultaneous access to multiple countries) And the vertical (continuous improvement of design, follow-up application) expansion method, the rigorous patent network is arranged around the world.

More than half of the core patents of these companies are authorized in China. Most of them apply for peripheral patents in mainland China, and their protection scope falls within the scope of foreign patent protection. Therefore, domestic enterprises have great patent risks. For the latecomers of China's LED industry, although the LED industry has already had a certain scale, its development has been greatly restrained due to its passive use in patent technology.

Zhang Wei believes that the lack of LED core patents and product brands in China will result in the loss of industry dominance. Taking the LED products exported by China as an example, due to the lack of core technology patents for LED chips, the products of domestic LED chip companies have not been able to be exported on a large scale, and most of the exported LED products use foreign LED chips. LED chips are one of the main costs of products. The price of LED products is affected by fluctuations in chip prices, and the pricing of imported chips is determined by manufacturers such as Nichia and Cree.

On the other hand, China's export of LED products lacks brands, and export manufacturers generally adopt OEM (manufacturing OEM) and ODM (design OEM) models. Export products are affixed to foreign manufacturers' trademarks and are authorized for sale by foreign manufacturers. According to the "6+1" industry chain theory, in the process of product design, raw material procurement, warehousing and transportation, order processing, wholesale operation, retail and product manufacturing in the industry chain, the lack of core patents and brands has led to the response of LED companies in China. External competition only occupies the production of products and part of the design process, and most of the profits of the products are lost abroad.

The risk of long-term potential trade friction is increasing

"Intellectual property protection has always been an important means of competition in international trade, and LED intellectual property issues will create long-term potential trade friction risks." Yu Ming said.

Take the United States as an example. In recent years, the United States has repeatedly used Section 337 to prevent China's LED products from entering the US market. Since 2008, China's LED companies have suffered four "337 investigations". In February 2008, American professor Rothschild filed a “337 investigation” application with the US International Trade Commission (USITC). USITC identified 34 companies involved in Japan, South Korea, Taiwan, and China, including Guangzhou Hongli and Shenzhen Zhoulei. Wait for 6 companies to be listed. After August 2008, February 2009, and August 2011, the United States conducted three “337 investigations” on LED products exported to China, involving more than 20 domestic enterprises, including Xiamen Sanan and Dalian Lumei. LED chip companies such as Hangzhou Silan Mingxin, packaging companies such as Guoxing Optoelectronics and Hongli Optoelectronics, and LED application companies such as Shenzhen Zhoulei. Enterprises that have suffered the "337 investigation" will either reach a settlement or compensate the plaintiff, and will always withdraw from the US market.

In this regard, Yu Ming suggested that domestic enterprises should actively participate in and respond to the international competition of LED intellectual property rights. First, in-depth study and understanding of the international "game rules" of LED intellectual property rights, actively apply for LED international patents through the PCT (Patent Cooperation Treaty) approach, and strive for the initiative in the international competition of LED intellectual property through gradual patent accumulation, Get long-term benefits.

The second is to establish an LED intellectual property early warning platform, build a patent library of LED technology and products, compile patent maps of key technologies of LED cores and patent distribution maps of key enterprises, and collect and collate international competitions on LED intellectual property rights (including disputes, litigation, authorization, cross-licensing). Related cases, such as mergers and acquisitions, restructuring, bankruptcy and other events that have an impact on the international layout of LED intellectual property.

The third is to actively respond to possible LED international lawsuits for intellectual property rights, adopt a method of responding to the lawsuit and actively defending, and flexibly use the dispute settlement mechanism of the World Trade Organization, in accordance with the TRIPS Agreement (the Agreement on Trade-Related Aspects of Intellectual Property Rights). The principle of national treatment and the principle of MFN treatment, as well as specific rules, appeal against unfair trade practices in the United States and uphold the rights and interests of members of the World Trade Organization. At the same time, efforts should be made to reach a possibility of reconciliation and to achieve cross-licensing of patents.

The fourth is to strengthen international exchanges and cooperation, and carry out various forms of communication and interaction with international leading enterprises in the LED field and enterprises in Taiwan. On the basis of emphasizing independent intellectual property rights, encourage domestic enterprises to obtain international patents of core key technologies through various means. Such as obtaining authorization from foreign leading enterprises, directly purchasing foreign patents, acquiring foreign companies with distinctive patents and intellectual property rights, and applying for improved patents on the basis of advanced foreign technology.

(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)

Led Strip Controller is to control the LED light bar of the instrument.

Features of Low-voltage LED Strip Controller is to control more than large ones, to control the use of the serial signal transmission purposes, the general control unit 512 need only four control connection, serial LED controller LED light sources require board register with the controller can choose models NE040S controller. 

led strip controller

LED strip controller can be divided into two categories: led light bar products, high power controller and led light bar products, serial controller.

LED strip are generally designed voltage 12V-36V, the number of each loop LED 3-6 series, with resistance step-down current limiting, each loop current 20mA or less. LED products from a number of loops of the LED composition, the advantage of LED Strip Controller of low voltage, simple structure, easy to design; 

led strip controller

Drawback is: LED Strip Controller is large-scale products when the current great need to configure low-voltage switching power supply. As the shortcomings of the product limitations, low voltage transmission can not be long-distance, Caused led strip controller is limited to small size products, such as signs of text, small designs. According to this feature, the controller design specifications: 12V selection of 75A / 30V MOS power control, the output current 8A / Road.


Mingxue Optoelectronics Co.,Ltd. has apply the I S O 9 0 0 1: 2 0 0 8 international quality management system certificate, As for LED Strip Controller , we apply the CE, RoHS and SAA certificate for our led lighting product.

LED strip controller

LED strip controller

LED Strip Controller

Led Strip Controller,Dual Color Controller,Single Color Controller,Rgb Color Controller

Shenzhen Mingxue Optoelectronics CO.,Ltd , https://www.led-lamp-china.com

Posted on