The aftermath of the "337 Case" is here! Chinese LED display companies win the Patent case in the US!

On June 12, 2021, the U.S. District Court for the Eastern District of Texas issued a final judgment in the case of Absen's intellectual property infringement regarding LED display products exported to the United States, with Absen prevailing against Ultravision Technologies LLC. In the first instance, the U.S. District Court for the Eastern District of Texas ruled that the defendant did not constitute Patent infringement and that the plaintiff's Patent was invalid.

Event Background

据了解，2018年3月27日，美国Ultravision Technologies公司（简称：超视公司）向美国国际贸易委员会（“ITC”）提出337调查申请，指控艾比森、奥拓电子、利亚德等11家中国企业对美出口/进口/销售的特定模块化LED显示屏(Modular Led Display Panels)侵犯了其专利权，请求委员会发布有限排除令和禁止令。11家中国上市企业为列名被诉企业，其中多数为LED显示屏企业。同年5月，美国ITC启动337调查，艾比森等国内LED显示屏企业被立案调查。

According to the introduction, the plaintiff Ultravision is a US LED display company. Its two patents focus mainly on waterproof structures, not core display technology, and lack substantive protective effect. Moreover, products with these patent features from multiple Chinese LED display companies were already sold in the US market before the patents were filed.

After understanding the details of this "Section 337 Investigation," the relevant companies did not take it lightly. They united closely, promptly reported the situation to government departments and industry associations, and engaged a legal team with extensive experience in handling "Section 337 Investigations" to respond to the complaint. According to reports, Absen's sales in the United States account for a high proportion of its overseas Revenue, so the "Section 337 Investigation" has a significant impact on it, leading it to respond to the complaint independently.

Subsequently, through active defense and the joint efforts of all parties, Chinese LED display enterprises successfully demonstrated to the ITC that the relevant technologies were independently developed and first used by Chinese LED companies. On November 27, 2018, Ultravision filed a motion with the ITC to withdraw the "Section 337 Investigation." On January 31, 2019, the ITC Administrative Law Judge issued an Initial Determination (Order No. 29), granting Ultravision's motion to withdraw. On February 21, 2019, the ITC issued a Final Determination notice, announcing that it would not review the Administrative Law Judge's Initial Determination based on Ultravision's withdrawal request, thereby terminating the investigation in its entirety. Chinese enterprises achieved victory in this "Section 337 Investigation." Chinese LED companies successfully defended their dignity and legitimate rights in the U.S. market during this Section 337 investigation.

Regarding this victory, Absen stated that the company's proactive response and evidentiary defense were among the main reasons for the plaintiff's voluntary withdrawal of the lawsuit. Although Absen invested significant human and material resources in the process, the outcome has had a positive impact and serves as a valuable reference for other defendants in the industry.

Of course, the company's strong technical capabilities, along with the significant technical and scale advantages of China's LED industry, also increase the likelihood of a successful lawsuit.

Latest Developments

337调查期间，Ultravision同时向美国德克萨斯州东区法院发起平行诉讼，并在短时间内增加了十余项涉诉专利。337调查案件结束后，德克萨斯州东区法院正式启动了该专利侵权诉讼的审理，起诉对象主要针对中国LED显示屏企业。

Recently, there have been new developments in the case at the U.S. District Court for the Eastern District of Texas.

After a four-day trial, the jury in the Eastern District of Texas, USA, delivered its verdict on June 11, 2021 (Eastern Time), finding that Absen and its Chinese counterparts did not manufacture display modules infringing on three patents held by Ultravision Technologies LLC, which were also deemed invalid.

Against the backdrop of the ongoing global pandemic and continuous China-US trade frictions, Absen's victory in the LED display Patent case in the United States, as the first to appear in court, is of great significance.

According to Leyard, another LED display enterprise, the court hearing dates for defendant companies in the industry vary depending on when they received the complaint. The judgment in the Absen patent litigation case, which was heard first, will set a precedent for subsequent trials involving other companies in the LED display industry. More importantly, the jury in the U.S. District Court for the Eastern District of Texas unanimously ruled that some of Ultravision's patents were invalid, which will have the most direct and decisive impact on future trials of other companies.

Absen's victory in this Patent lawsuit not only lays a solid foundation for subsequent trials for Chinese LED display industry enterprises, but also demonstrates that the overall technical level of China's LED display industry is continuously improving, with increasing awareness of intellectual property protection. More importantly, Absen's victory in this Patent lawsuit clears Patent obstacles for Chinese LED display companies in the US market and global markets, heralding the recovery of the international LED display market and the arrival of a new era for the entire LED display industry.

Absen states that the company respects intellectual property rights, but is not afraid of any malicious litigation regarding intellectual property. It remains committed to continuously enhancing its capabilities in the creation, utilization, protection, and management of intellectual property.

It is reported that in 2019, on the basis of R&D investment accounting for more than 5% of costs, Absen made greater strategic investments, continuously exploring and developing cutting-edge industry technologies, achieving progress and breakthroughs in many key technologies, and holding more independent intellectual property rights.

In 2020, the company's R&D investment was 84.2003 million yuan, accounting for 5.13% of Revenue. The company adheres to independent R&D, actively promotes the application of new technologies, and maintains exploration and development in areas such as LED Packaging technology, LED display image quality processing technology, LED screen intelligent control systems and ultra-high-definition technology, large-screen control, smart all-in-one machines, and virtual production technology, while also focusing on research and innovation in core frontier technologies.

Affected by the pandemic, Absen's overseas revenue in 2020 was RMB 862.7371 million, a Year-on-year (YoY) decrease of 46.97%. In 2021, the company will accelerate strategic investments in key overseas markets, actively carry out online marketing and support local (Sales) channel expansion, explore customer needs, promote the rapid recovery of overseas market business, and achieve rapid growth of the company's overall business.

Material sources: Absen, Leyard, Internet, etc.,

Compiled by China Light Network.