Cree tells Dongbei Optoelectronics patent infringement to drive opponents out of the US market

According to reports, the US LED giant Ke Rui is trying to find ways to drive out the LED bulbs produced by the opponents out of the US market. In other words, as energy-efficient lighting becomes more popular, their competition in the market is more intense, and they will also be seen in court.

Cree Inc. today filed a complaint with the US International Trade Commission (ITC) and the Federal Court of Wisconsin, alleging that unlisted US company Feit Electric Co. and Taiwan's Dongbei Optoelectronics infringed the company's LED chips, packaging and LED bulbs. Design and operate multiple patents.

Although the US Congress continues to block the phasing out of traditional incandescent bulbs, as utilities in the region compete with the government to provide subsidies to reduce costs, consumers are turning to power-saving LED bulbs. The incandescent bulb was invented by Thomas Edison.

Needham & Co. analyst Edwin Mok released a report on December 30 last year that LED lighting sales surged nearly 60% last year and is expected to grow another 34% this year.

Greg Merritt, vice president of marketing and public affairs at Cree, said: "Consumers will buy these products. The premise is that the appearance and operation of these products must be the same as expected. The appearance of the product must not only be like a light bulb, but also the way it is operated. It must also be like a light bulb."

Cree's first light bulb, priced at less than $10, is an excellent alternative to traditional 60-watt and 40-watt bulbs. However, in the big coffee companies such as General Electric Co. and Philips (Royal PhilipsNV), and the rising star of Feit, which is based in California, the market of the tax is in jeopardy, and the production of Dongbei Optoelectronics is in jeopardy. The light bulb is sold by Feit.

The company, which is headquartered in Cree, North Carolina, grew 19% of its annual sales as of June 29 last year, reaching $1.6 billion. According to Cree's annual report, LED lighting products have become the company's main source of revenue, and sales have more than doubled in the past two years. Even if sales are booming, Cree's share price has fallen 48% last year.

Mok wrote in the report that with the manufacturers that are enough to produce "good enough" products to join the battle, the LED market is selling well, but the price is likely to be bearish.

Osram AG, which replaced the traditional light bulbs with its power-saving LED bulbs, has been bombarded by the lighting industry. Osram AG was forced to lay off employees last year, and analysts speculated that it might sell its lighting business.

In addition to the 8 patent infringements, Cree also complained to ITC that Feit and Dongbei Optoelectronics were false and misleading.

The US Environmental Protection Agency stipulates that LED bulbs, as general-purpose designs such as table lamps, must provide omnidirectional illumination to qualify for Energy Star certification.

However, Cree pointed out that Feit's lighting products failed to meet this requirement, but the company advertised that the product complies with this requirement.

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