LED patent pool responds to technical barriers

"The beauty of 'Night Expo', LED light source is really indispensable." When the word "LED" is constantly drawn from the mouth of Baiyan's mouth, Bai Jiansong, Pan Jiangen, executive director of the China Lighting Society, feels keenly that the LED industry is developing in China. A good time is coming.

Some institutions expect that in 2015, LED's market share in China's lighting market will reach 20%, driving the industry to reach 500 billion yuan, and China will enter the top three in the global LED lighting market.

Previously, more than 60% of Chinese LED companies' products were sold in overseas markets such as Europe and the United States.

"But such a proportion situation may be reversed." Pan Jiangen told this reporter that in 2009, the financial crisis led to a weak foreign LED market. In addition, since the core patent technology of LED has been monopolized by European, American and Japanese manufacturers, many Chinese companies have encountered patent litigation overseas, and most of them have ended with compensation for settlement.

However, with the major projects such as the Olympic Games and the World Expo, China's LED industry has been upgraded as never before. According to the statistics of China Optical Optoelectronics Industry Association, China's LED packaging device production capacity accounted for 60% of the global total in 2009, and the output value of LED application products exceeded 30%.

With the expansion of the domestic market, LED companies have also begun to move to the mainland.

Going to the Mainland to "go to the market"

At present, China has 7 semiconductor lighting engineering industrialization bases and 4 regional industrial clusters, but the production and sales markets are mainly concentrated in Guangdong and Zhejiang provinces.

Unlike most companies that build their factories in coastal areas and sell their products to the mainland or all of them, the company has made a “radical” decision: to go to the mainland to produce and move the factory from Shenzhen to Chengdu.

“We hope to be closer to the market.” Mao Yuming, executive director of Duo Duo Enterprise Group, told this reporter that the areas with the most LED products in China are first-tier cities with developed economies, and second, remote areas with more planned new projects. . “The extent of being inland can better balance the two markets.”

In fact, some inland cities have shown a more open mind than the preferential policies of some coastal cities.

According to this reporter, according to the cooperation agreement between the company and the Chengdu government, the former assisted Chengdu to build a complete LED industry chain in its new energy industry base. In return, Yan Duoli will receive 300 acres of factory construction land and 50 million yuan of financial support.

Obviously, for Duo Duoli, who was incorporated with a deposit of 500,000 yuan 11 years ago, 50 million is still a small amount of money today.

Even if more companies are more convinced that the near-water towers will get the first month, and choose to station the coastal cities to take into account both overseas and domestic markets, the road to “going to market” in the mainland is not alone.

Almost at the same time, Zhejiang Haiwei also embarked on the road of relocation of the mainland, but its destination is Xuancheng, Anhui.

The national standard led to the elimination of 50% of enterprises?

“Not only Xuancheng, we are actively adapting to the whole domestic market.” Xie Menghui, the assistant manager of Haiwei’s young sales manager, explained to the reporter that Haiwei, who used to be used in the “not bad money” foreign market, I feel a strong "unacceptable".

It is understood that because of the lack of relevant standards, there are many types of LED lighting products in the domestic market, but the quality is not good.

At the same time, as an emerging industry, the number of large enterprises with real control and international competitiveness in China's LED lighting industry is relatively small, and the products of enterprises are highly similar. The consequence is to kill the price, leading to long-term competition for price competition.

"Compared with foreign countries, the quality of products is different. Some domestic projects give lower prices when bidding. Therefore, in terms of product selection, low prices sometimes become the preferred standard." Xie Menghui admits that only users have special requirements, engineering Only then will we care about the quality of our products.

"No standard can be relied upon, it has caused the 'cottage' to be rampant, and the market is disorderly." Pan Jiangen said that many companies need LED products but they don't know how to choose suppliers. The price is compared.

However, the current status of such awkward industry is being rewritten. On May 1 this year, after seven years of brewing, the five standards set by the National Lighting and Lighting Standardization Technical Committee began to be implemented.

According to industry insiders, after the implementation of the national standard, 50% of enterprises will be eliminated. "The cost per product will increase by 8-10 yuan, while the profit of some products on the market is only 3 yuan, or even less." One business owner said.

"The current standards are not yet complete. The specifications for specific parameters are not detailed enough. The binding force is not very strong, but there will be some standards to be introduced." Pan Jiangen believes that it is foreseeable that the LED industry will inevitably Face a shuffle.

Holding a group to attack patent barriers

Because of its core technology, Zhang Ming’s company has suffered from “no blame”.

“We were sued by a well-known Japanese high-tech multinational group company, saying that Sony’s rare earth luminescent materials infringe on their patent rights.”

As the LED product supplier of Shanghai World Expo, Xinli holds more than 130 core patents for LED lighting. Among them, the rare earth luminescent powder developed by Xinli spontaneously absorbs visible light or sunlight during the daytime and automatically illuminates when it is dark at night.

From the development of rare earth luminescent powder to the use of products, Zhang Ming spent five years. But when his career was booming, he suddenly received a subpoena from the court. The Japanese company asked Xinli to immediately pay 500,000 yuan, shut down the factory, and destroy molds and equipment.

“They took the patented technology of China and changed their face and applied the known technology as a proprietary technology. Then they issued a war on intellectual property in the market and tried to monopolize the entire market of rare earth luminescent materials.” Zhang Ming said angrily. .

After 31 months of tug-of-war, after spending a lot of energy and money, Zhang Mingcai won the lawsuit.

In fact, the core patent barrier is like a Damocles sword hanging over the Chinese LED industry. Since core patents are controlled by overseas manufacturers, Chinese companies are at risk of patent infringement at any time.

It is understood that the demand for LED in the Japanese market is extremely large, but the Chinese brand has little involvement. One of the important reasons is that Japan’s investigation of patent infringement is extremely strict, forcing Chinese companies to take the initiative to give up this market.

Correspondingly, overseas companies have stepped up their efforts to enter the Chinese market. For example, CREE and Xuming have established factories in China, and Nichia has plans to establish production plants in China to expand its product line coverage.

"It is recommended that the relevant enterprises take up the group and form a patent pool." Pan Jiangen said.

According to this reporter, in Shenzhen, where LED companies are the most concentrated, a domestic LED patent alliance will be established, and patents can be cross-licensed between members.

Yan Shirong, executive vice president of the Shenzhen LED Industry Association, told reporters that after the establishment of the patent alliance, on the one hand, it can reduce the authorized price of core patents, on the other hand, it can even replace a core patent form through multiple application patents, and reduce the overall corporate cost.

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