ITC Finds Infringement of Lumileds’ Patents, Expands Order Barring Imports
SAN FRANCISCO, May 21, 2007: The U.S. International Trade Commission has issued a notice favoring Morgan Lewis client Philips Lumileds in a critical patent enforcement investigation that will significantly impact the global market for ultra-high-brightness light emitting diodes (LEDs).
The ITC's decision, issued on May 9, states that all of Taiwan-based Epistar's ultra-high-brightness LEDs that were subject to the investigation infringe the two asserted claims of a Lumileds patent. The ITC decision expands upon an earlier decision by an administrative law judge in January concluding that Lumileds' patents were valid and enforceable, but only finding infringement of one of the accused product families. The ITC's decision is expected to have a dramatic impact on the burgeoning market for ultra-high brightness LEDs used in such products as automotive brake lights, traffic signals, and LCD displays.
In connection with the May 9 decision, the ITC has issued an exclusion order prohibiting the importation of any Epistar product that infringes the Lumileds patent and certain products that include these LEDs. Michael J. Lyons, a partner in the Palo Alto office of Morgan Lewis, called the ITC's decision "a significant victory that underscores the importance of Lumileds' patented technology that has revolutionized the LED industry."
Lumileds filed a complaint against Epistar in November 2005. The ITC instituted an investigation that included an extensive hearing before an administrative law judge (ALJ) in August 2006, an initial determination by the ALJ in January 2007, and now the final decision of the full Commission. After the 60-day Presidential review period, the exclusion of Epistar products ordered by the Commission will begin. Lumileds also has a related action against Epistar pending in U.S. District Court for the Northern District of California in which Lumileds seeks both damages and a permanent injunction barring future infringement.
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