Interpretation: How do Chinese LED companies deal with patent risks?

Patents are generally referred to as patents, and patent protection has time and geographical restrictions. The Chinese Patent Law divides patents into three types, namely inventions, utility models and designs. The duration of invention patents is 20 years, and the durations of utility model patents and design patents are ten years, all calculated from the filing date. . At the same time, a patent granted by a country under its patent law is valid only within the jurisdiction of the country's laws and is not binding on other countries. Involving LED patents also have these characteristics.

With the rapid development of globalization, digitalization, and biotechnology revolution, LED patents as intangible assets have become especially important for enterprises. For large enterprises, especially those that have mastered LED core technology patents, the assets that can be obtained by LED patents can account for 70% or 80% of their total assets in recent years. For SMEs, one or more key LED patent technologies may determine the fate of the entire enterprise due to the lack of alternative tools.

However, due to the late start of China's LED industry, the work on LED patent application and LED patent protection has lagged behind, making Chinese LED companies face the fierce market competition. , often in a more passive position.

In order to occupy a better position in the global LED market competition, some prescient Chinese companies have begun to develop LED patents in various ways, but how can Chinese LED companies respond to the current patent layout and ultimately whether they can be in the global LED core? A place in the technology patent camp?

Foreign companies are stationed, China's LED industry is mixed

According to industry statistics, with the vigorous promotion of the Chinese government and the large-scale construction of LED upstream equipment and LED sapphire substrate materials, it is expected that China's LED industry will reach 500 billion yuan in 2015. In order to compete for this fascinating market cake, many LED manufacturers around the world have set the Chinese market as a future development area, which is mixed for the booming Chinese LED industry.

Important global LED companies will regard China as an important strategic market in the next few years, which will not only accelerate the development of China's overall LED industry, but also promote the further improvement of China's LED industry structure. However, for Chinese LED companies, especially those lacking LED patents, the large-scale influx of foreign companies has brought more market competition.

When Mr. Mao Jinsheng, Director of the Research Center of the State Intellectual Property Office of China, published the "China LED Industry Patent Status and Countermeasures", he pointed out that Japan is the strongest in terms of global LED patent distribution, accounting for 28% of the global patents, while mainland China accounts for the world. The proportion is only 9.3%. In terms of LED chip substrate manufacturing, nearly 90% of Chinese companies have chosen to pay a high patent fee to Japan's Nichia .