EMCORE Settles Patent Infringement Case Brought By Nichia

(RTTNews) - EMCORE Corp. (EMKR) said Friday that it has settled the patent infringement case brought by Nichia Corp. before the U.S. District Court for the Eastern District of Texas.

In November 2011, EMCORE exclusively licensed several of its non-core LED patents to Everlight Electronics Co., Ltd., a Taiwanese LED company. In April 2012, Everlight filed suit against Nichia alleging infringement of EMCORE's U.S. Pat No. 6,653,215 it licensed. Because EMCORE still owned the '215 patent, the complaint named EMCORE as a mandatory co-plaintiff. The suit, however, is principally a dispute between Everlight and Nichia. Following a petition initiated by Nichia, on February 11, 2014, the U.S. Patent and Trademark Office issued a Final Written Decision in which it found all claims of the '215 Patent to be unpatentable. In March 2014, Nichia and Everlight agreed to dismiss the claims pertaining to the EMCORE '215 patent from the lawsuit without prejudice.

In June 2013, Nichia filed a complaint against EMCORE before the U.S. District Court for the Eastern District of Texas alleging infringement of Nichia's U.S. Pat No. 7,295,587 entitled "Semiconductor Laser Having Optical Guide Layer Doped for Decreasing Resistance."

The current settlement agreement resolves the Eastern District of Texas lawsuit regarding the '587 patent. Under the settlement, EMCORE acknowledges the validity of the '587 patent, and makes a payment of damages to Nichia and Nichia agrees to grant EMCORE a non-exclusive, royalty-bearing license to the asserted patent.

EMCORE said the details of the settlement agreement are confidential.