SemiLEDs Patent Ligitication Settlement Announcement
June 26, 2012
Dear Valued Customer:
On behalf of SemiLEDs, I would like to first thank you for your continued support of our company and our LED products. We value our relationship with you and are dedicated to provide you with the highest quality LED products.
As you may already know, we recently announced that we ended the patent
litigations between Cree, Inc. and us. We did not admit as part of the resolution
of the litigations that we infringe any of the Cree’s patents that were asserted
against us (the “Cree Asserted Patents”) or that any of the Cree Asserted Patents
are valid. However, we decided to end the litigations so that we can focus all of our
resources on developing our business, serving our customers and delivering
innovative LED products to our customers.
As part of the resolution, we agreed to an injunction that, starting on October 1,
2012, we will not (and can not assist others to) make, use, import, sell and/or offer to
sell our affected LED products based on our MvPLED technology in the United
States (see the complete list of the affected SemiLEDs products in Exhibit A) (the
“Affected Products”). However, we may continue to sell the Affected Products to
our non-U.S customers who do not make, use, import, sell or offer to sell the Affected
Products (and/or any device that incorporates any of the Affected Products) in the
To address the U.S. market, we have developed a new technology called
Enhanced Vertical (“EV”). EV is a new line of LED products with the newly
developed technology called EVLED that could stand higher operating temperature,
have better reliability and yield. Our EV products will be offered to our customers
in the United States and the rest of the world (the “New Products”). The New
Products are currently available for sampling and qualification, and your sales
representative will contact you to discuss the specifications of our New Products and
how we may help for the transition well in advance of the October 1, 2012 timeline.
Our U.S. customers may continue to order and purchase the Affected
Products before October 1, 2012; provided that such Affected Products
must be purchased and delivered in the United States before October 1,
Our non-U.S. customers may continue to order and purchase the Affected
Products; provided that the Affected Products and any device that
incorporates any such Affected Product shall not subsequently be made,
used, imported, sold or offered to be sold in the United States on or after
October 1, 2012.
We will continue to provide our typical customer and technical support even
after October 1, 2012 for all Affected Products purchased and delivered before
October 1, 2012. We may provide support for Affected Products purchased on or
after October 1, 2012 if and only if those Affected Products will not be for use, sale or
importation in the United States.
We would like to assure you that our New Products using our newly
developed EVLED technology will have equivalent performance as the Affected
Products using our MvPLED technology and the pricing of the New Products will be
similar and competitive in the marketplace. I also want to assure you that SemiLEDs
will do everything it can to assist you during the transition period.
In the next few days, a SemiLEDs sales representative will reach out to you to
answer any questions you may have. If you have any question before then, please
feel free to contact us at any time. Again, we at SemiLEDs appreciate and value our
relationship with you and look forward to continue to build the best solid-state
lighting products together.
Trung T. Doan
Chairman and CEO
Affected Products List
SL-V-B45AK (I-Do) SL-V-B45AK (I-core)
Affected Products List
SemiLEDs develops and manufactures LED chips and LED components for general lighting, including street lights and commercial, industrial and residential lighting, along with specialty industrial applications such as UV curing, medical/cosmetic, counterfeit detection, and horticulture. SemiLEDs sells blue, green and ultraviolet (UV) LED chips.