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Epistar Expected to Sign Patent Agreement With Japanese LED Suppliers

2010/08/27 | By Ken Liu

Taipei, Aug. 27, 2010 (CENS)--Epistar Inc. Chairman B.J. Lee flew to Japan last week, incurring speculations that Taiwan's No.1 LED (light emitting diode) chipmaker would sign a patent cross-licensing agreement with its Japanese counterparts Nichia or Toyoda Gousei in a bid to further boost earnings and revenue.

Industry executives estimated once the deal is concluded Taiwan's LED industry would see its price/earnings ratio surge to at least 20 folds as a whole from current 15 folds or so.

It is understood that the AUO Group, the Hon Hai Group and Formosa Epitaxy Inc. are also seeking to sign a similar deal with the two Japanese LED patent holders.

Epistar executives pointed out that the company now has a total of 1,200 patents, placing it in an advantageous position in patent-licensing negotiation. They added that the company has been vigorously pursing the opportunity to talk with LED heavyweights over patent cross-licensing deals.

Taiwan's industry watchers welcome Epistar's moves to sign patent cross-licensing deals with major players from the point of view that such efforts would give application providers peace of mind when using the company's chips.