The Intellectual Property High Court finds infringement of Nichia’s patents and awards damages based on the price of LCD TV

On November 18, 2020, the Intellectual Property High Court (the “IP High Court”) ruled in an appellate patent infringement case between Nichia Corporation (“Nichia”) and Toshiba Visual Solutions Corporation (“Toshiba Visual”), finding that Toshiba Visual’s LCD TVs infringes Nichia’s patents, and ordering Toshiba Visual to pay Nichia 132 million yen in damages.

In 2017, Nichia filed a lawsuit seeking damages at the Tokyo District Court, claiming Toshiba Visual’s importation and sale of LCD TVs (Product Number: 32S8 and 32S10) equipped with LED backlights infringed three Nichia patents (Patent Nos. 5177317, 5825390, and 6056934) related to LEDs. In February 2020, the Tokyo District Court ruled in favor of Nichia, finding that Toshiba Visual infringes the patents, but in March 2020, Nichia appealed the ruling, dissatisfied with the method used to calculate the damages.

Nichia argued that the amount of damages should be calculated based on Toshiba Visual’s sales of LCD TVs and not LEDs, considering the significant contribution of the LEDs to the LCD TVs. The IP High Court confirmed Nichia’s claims and calculated damages based on the sales of LCD TVs, awarding 132 million yen in damages.

Nichia believes this ruling by the IP High Court is of great significance, finding that a claim for damages for patents on LEDs can be calculated based on the price of TVs equipped with them. Nichia also believes this important ruling will have an impact on our intellectual property strategies.

Nichia seeks to protect its patents and other intellectual property rights and takes actions against alleged infringers in any country where appropriate and necessary.

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