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The LED industry is a high barrier to entry. It refers to upstream chips and epitaxial wafers, which currently account for 70% of the industry's output. It is precisely because of this that the formation of LED patent barriers. At present, the global LED market is controlled by the top 5 manufacturers in the industry, namely Nichia, Toyoda Gosei, Cree, Philips Lumileds and Osram. In order to maintain their competitive advantage and maintain their market share, these five companies have applied for a number of patents, covering almost the entire industrial chain including raw materials, equipment, packaging and applications. The development and production of LED manufacturers through patent authorization and cross-licensing not only hinders the emergence of new entrants, but also increases the production costs of enterprises to some extent.
However, the barriers to this patent have already shown signs of loosening. Because the LED-related patents introduced since 1990 will gradually reach the effective patent period of 20 years from 2010, a considerable part of this involves important white LEDs.
Some cases of LED patents
Toyoda Gosei authorized by Nichia Chemical, Osram, Philips, Showa Denko
Nichia authorized Taiwan Hon Hai Group, Stanley Electric, Citizen
Nichia and Taiwan Guanglei cooperate, Guanglei OEM Yiya Chip
According to the current market conditions, manufacturers that can solve patents are:
CREE / Nichia / Toyoda / Lumileds / Osram / Epstar / Bridgelux
CREE: There are global patents. And with Nichia and TG cross-licensing, authorized red, green and blue sunlight to use the chip.
Nichia: Global patent. Cross-licensed with Toyota, CREE, and Lumileds, there are 93 appearance patents and 58 design patents in Japan, 30 patents in the US, 32 patents in China, and 2 patents in Hong Kong.
Lumileds: Cross-authorization with Nichia
OSRAM: Cross-authorization with Nichia
Toyoda: Cross-authorization with Nichia
Bridgelux: has a global patent, has authorized red, green and blue sunlight to use the chip
Epstar: I can't solve the patent problem in Japan, and other countries can solve the patent problem.
Authorization and patent dispute map in the field of white LED
Japanese patent analysis:
Japan's white light patents are mainly owned by NICHIA and TG, of which NICHIA has hundreds of patents in Japan. The patents involving white light are mainly:
1, blue chip
2, YAG phosphor
3, blue chip coated YAG phosphor white light technology
Because TG earlier competed with NICHIA for Apple's notebook computer backlight business, TG reached Apple's product requirements, so many TG chips and products were used in the backlight of high-end brand computers. The production of its chips is tight, and as the supply of chips is tight, its prices are rising.
At present, NICHIA only sells its products in mainland China, but does not provide its phosphors and chips.
TG not only sells its products in mainland China, but also sells chips and phosphors, and has agents in China. However, TG does not authorize any packaging factory in China. Many packaging factories only purchase chips and phosphors through agents, and also export them to Japan in the form of patents. TG has authorized several major manufacturers in Taiwan to patent it. 
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