Nichia Corporation (“Nichia”) and Hirose Radio & Electronics, (“Hirose”), a Japanese corporation manufacturing and selling electronic appliances, have reached an agreement to settle the case which was pending between the parties in the Tokyo District Court (“The Case”). The Case was a preliminary injunctions case, in which Nichia claimed that its Japanese patents Nos. 5177317 and 5610056 (both patents relate to white LEDs using YAG phosphors and will hereafter be referred to as “Nichia YAG Patents”) were infringed by some of the LED lights imported and sold in Japan by Hirose, and sought a preliminary injunction against the importation and sale of infringing products.

While Hirose had been unaware of infringement at the time of filing of the Case by Nichia, it acknowledged during the proceedings that in some of the LED lights which it purchased from Yadent. (Taiwan) and imported into Japan were used white LEDs of Everlight Electronics (“Everlight White LEDs”), and that the Yadent’s LED lights products using the Everlight White LEDs fall under the claims of the Nichia YAG Patents. In light of those acknowledgement by Hirose, and for the purpose of amicable, quick resolution of the disputes, Nichia and Hirose agreed to resolve the Case by a settlement before the court, on the condition that Hirose should stop importation and sale of the infringing products and pay settlement fees to Nichia.