Taiwan-based LED optical lens maker Ledlink recently lost a patent infringement lawsuit filed by Taiwan-based LED heatsink maker Ledray, but the firm has stated that the case is not finalized and has not been affecting operations.
Since 2010, the two firms have been in discussions over the joint development of modules, and Ledray provided numerous patented modules for Ledlink as examples. However, Ledlink showcased similar products in 2011. In May 2012, Ledray filed a patent infringement lawsuit against Ledlink.
Ledray stated that the Intellectual Property Court ruled against Ledlink on May 31, 2013 and banned the firm from producing, selling, and using its Bulb Series LED lighting and one other patented product. Ledray also plans to request compensations from Ledlink in the future.
Ledlink responded that Ledray requested compensation of NT$10 million (US$333,756) before but retracted the request. Therefore, this case does not have any compensation issues. Furthermore, the patents do not affect the design and technology of new heat conductor modules, hence the lawsuit does not affect current operations.
Affected by a relatively low capacity utilization rate in the first quarter, Ledlink saw profits below than expectations. Market observers have forecast that the firm will see rising revenues in the second quarter and May revenues may reach a record high.
Telung Tang, CEO of Ledlink, stated that first-quarter performance was affected by fewer working days in February due to the Lunar New Year holidays. In addition, gross margin was affected as its plant in Yangzhou, China, began operations, increasing amortization and labor costs by NT$70 million. Tang added that net profit margin in the second quarter may exceed 19%.
Currently the firm has 140 injection molding equipment sets at its plant in Dongguan, China, and 20 injection molding sets at the Yangzhou plant. Ledlink hopes the Yangzhou plant will operate at full capacity within three years and increase company market share to 50-60%.
Market observers noted that Ledlink may see May revenues exceed NT$100 million and average gross margin rebound from 43.34% in the first quarter.
