Cree LED and Current Lighting Enter into License Agreement
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The patent license agreement between Cree LED and Current Lighting Solutions regarding the KSF/PFS red phosphor technology is a strategic move for Cree LED. The licensing of these patents allows the company to integrate advanced phosphor technology into its Pro9 products, which is crucial for enhancing the color quality and efficiency of LED components. This integration can potentially increase Cree LED's market share in the LED industry by offering high-power products with improved color rendering—a key factor for customers in sectors such as architectural lighting, retail and high-end commercial lighting.
From a market perspective, this deal may also signal Cree LED's commitment to innovation and maintaining a competitive edge. The use of KSF/PFS phosphor in their Pro9 technology could set a new benchmark for LED performance, possibly influencing industry standards. Competitors may need to seek similar advancements to keep pace, potentially leading to a wave of innovation and patent licensing within the sector.
For investors and stakeholders, the long-term implications of this agreement could be substantial. Enhanced product offerings can lead to increased sales and market presence. However, the financial terms of the deal are not disclosed, making it difficult to assess the immediate financial impact. It's also essential to monitor how this technology will be received in the market and whether it will translate into a tangible competitive advantage.
The confidential nature of the specific licensing terms makes it challenging to quantify the direct financial impact of the patent license agreement on Cree LED's financials. However, the licensing of these patents can be viewed as an investment in Cree LED's technological capabilities, which may enhance its product differentiation and allow for potential pricing power due to the perceived higher value of Pro9 enhanced products.
Investors should consider the potential for increased R&D expenses associated with the integration of KSF/PFS phosphor into Cree LED's products. Nevertheless, if the Pro9 technology leads to higher demand and sales volumes, the initial costs could be offset by higher revenue streams in the future. Monitoring Cree LED's future financial statements for changes in revenue, gross margins and R&D expenses would provide a clearer picture of the financial implications of this agreement.
Moreover, the exclusivity aspect of the license—being nonexclusive—suggests that Current Lighting Solutions could grant similar rights to other companies, which may limit the competitive advantage for Cree LED. Investors should weigh this factor when considering the long-term prospects of Cree LED's market position.
The agreement grants Cree LED a nonexclusive, worldwide license under specific U.S. patents, which legally enables the company to use KSF/PFS phosphor technology. The nonexclusive nature of the license means that Current Lighting Solutions retains the right to license these patents to other entities, potentially diluting Cree LED's competitive advantage. From a legal standpoint, the protection of intellectual property through licensing is a common strategy to monetize patents while fostering industry collaboration.
It is also important to note that patents have a finite life, after which the technology enters the public domain. The strategic use of these patents by Cree LED will be critical during the patent's life span. The company will need to maximize the commercial benefits of the licensed technology before it becomes widely available. Furthermore, the legal adherence to the terms of the license will be essential to avoid potential patent infringement disputes, which can be costly and damaging to a company's reputation and stock performance.
Six KSF/PFS Phosphor Patents Included for LED Manufacturing
Cree LED and Current Lighting Solutions entered into a patent license agreement with respect to Current’s patents related to KSF/PFS red phosphor for use in Cree LED products featuring Pro9 technology which utilizes KSF/PFS phosphor to boost the efficiency of LED components. (Graphic: Business Wire)
Under the agreement, Cree LED has been granted by Current, a limited, nonexclusive, and world-wide license under
This license covers Cree LED products featuring Pro9™ technology which utilizes Potassium Fluoride Silicon (KSF/PFS phosphor). This phosphor boosts the efficiency of LED components, especially those delivering higher CRI (Color Rendering Index).
Cree LED’s product portfolio includes a broad range of Pro9 LED products, including XLamp® COB LED arrays, high-power LEDs, and J Series® mid-power LEDs. Cree LED customers using Pro9-enhanced products benefit from the high color quality, efficiency, and reliability of these LEDs.
“We are pleased to work with Current to license their KSF/PFS patented technology,” said Joe Clark, president of Cree LED. “As a result, we have expanded our Pro9 product options, which includes the only high-power products with the advantages of KSF/PFS phosphor, benefiting customers across all lighting applications.”
The Cree LED Patent License Verification notice can be reviewed here: https://www.cree-led.com/patent-license-verification-letter-pdf
Specific licensing terms are confidential.
Cree LED, XLamp and J Series are registered trademarks of CreeLED, Inc. Pro9 is a trademark of CreeLED, Inc. All other trademarks are the properties of their respective owners.
About Current
At Current, we are Always On and working to improve lives with the industry’s most expansive portfolio of sustainable advanced lighting and intelligent controls that reliably meet our customers’ needs. Learn more at currentLighting.com.
About Cree LED
Cree LED offers one of the industry’s broadest portfolios of application-optimized LED chips and components, leading the industry in performance and reliability. Our team delivers best-in-class technology and breakthrough solutions for focused applications in high power and mid-power general lighting, specialty lighting and video screens. With more than thirty years of experience, Cree LED develops products backed by expert design assistance, superior sales support and industry-best global customer service. For more information, visit www.cree-led.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240124664815/en/
Cree LED Media Relations
Debi Polo
Sr. Manager, Marketing Communications, Cree LED, Inc.
debi.polo@cree-led.com
SGH Corporate Communications
Valerie Sassani
Vice President of Marketing and Communications, SGH - SMART Global Holdings, Inc.
valerie.sassani@sghcorp.com
Current Lighting
Tamara Douce
Director Enterprise Marketing & Communications
tamara.douce@currentlighting.com
Source: Cree LED
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