Taipei, March 27, 2009 (CENS)--LED packager Everlgiht Electronics Co., Ltd. of Taiwan and lighting giant Osram GmbH yesterday inked a cross-licensing agreement to allow them to use each other`s LED patents in certain areas, a move some insiders deem good for boosting global growth of LED-lighting market.

Under the agreement, Everlight allows Osram to use its patented packaging technologies in exchange for Osram`s permission to apply a 2003-licensed technology to LED automotive lamps and LED general lighting, expanding from initial application to backlight modules.

On top of the licensing agreement, the two companies also signed a contract-manufacturing deal, contracting Everlight to make some types of built-to-order LED package for Osram.

Industry watchers pointed out that the agreement would protect Everlight`s customers from breaching Osram`s patents. Executives of Taiwanese epitaxy-wafer maker Epistar Inc. welcomed the agreement, saying it would help Taiwanese LED makers crack the Western markets, which are well protected by patents.

Everlight executives stressed expansion of application coverage is the most significant value for their company in the deal, because the pact would allow it to quickly grab market share.

In September 2003, Everlight paid Osram huge royalty for its patents, which the company`s executives said considerably helped the company win orders on international markets and become a contract backlight supplier of Nokia and Apple.


(by Ken Liu)