Samsung LEDs patent numbers trend in US ('16.4Q), next to which a man is holding a patent mark
Industry Outlook: Patent War Ahead

Driven by globalization, competition within the LED industry is growing fiercer. Market dominance by any single player is now unthinkable. In this new landscape, leading LED manufacturers will more likely engage in patent lawsuits or other offensive strategies.

Chinese and Taiwanese LED makers have recently seen rapid growth due to their exposure to the huge mainland Chinese market, but they lack a strong patent portfolio. When these companies seek to expand overseas, their international competitors may declare all-out patent war to kill their efforts.

As the LED industry continues to oversupply globally, some anticipate industry-wide restructuring will accelerate. With more than a few small Chinese LED companies declaring bankruptcy already, and with continuing mergers and acquisitions, the expert view predicting that the supplier side will reorganize into several giants with a strong patent portfolio has gained quite a following. A harsh payback may be coming for those market players who disrupted the industry, breaking patent regulations and using high-volume/low-cost strategies instead.

Samsung LEDs a vertical bar gragh of total patents registered: Samsung in second place
Samsung's strong IP position

Samsung holds a range of patents in all LED technologies, including epi, chips, packages, phosphor, modules and drivers. It is a world leader in the number of patents registered and filed.

Samsung has signed cross-licensing agreements with top tier global LED manufacturers for patents and core technologies. This serves as an opportunity for it to expand business with customers from different application industries, and for our customers to have access to a larger pool of technologies and products that will provide greater stability in production and increase their product sales.

Samsung is also strengthening its research and development of new technologies to ensure it remains competitive in the future, and will further increase its global registration of new patents to protect its intellectual property rights.

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