Cree signed a worldwide patent cross-license agreement with Epistar, a chip innovator and manufacturer of LEDs that are used by lighting companies. The agreement relating to LED chips is intended to further advance the growth of the LED lighting and LED bulb markets. Cree and Epistar both hold broad and substantial LED chip patent portfolios that are important for making blue LEDs, the foundation of white LEDs found in most lighting products manufactured worldwide, say the companies.
Under the terms of the agreement, each party receives a license to the other’s nitride LED chip patents and is granted certain rights to non-nitride LED chip patents. Over the term of the agreement, Cree will receive a licensing fee and royalty payments from Epistar.
According to Epistar, the patent license agreement will help it to accelerate its R&D activities for creating new innovation.
Other terms of the license agreement were not disclosed. No technology transfer between the parties was included in the agreement.