SOURCE: Seoul Semiconductor

January 07, 2008 11:47 ET

Seoul Semiconductor Filed a Defamation Lawsuit Against Nichia

SEOUL, KOREA--(Marketwire - January 7, 2008) - Seoul Semiconductor announced today that it has filed a defamation lawsuit against Nichia Corporation for Nichia's false statements about N.D. Cal Case ("Design Case") with Central District Court in Seoul, Korea. Seoul Semiconductor's suit against Nichia, filed on January 7, 2008, seeks compensation for damages for defamation in the amount of 0.5 billion Korean won (approximately US$531,000).

The product, which Nichia has insisted in the US design patent lawsuit that is infringing on its patents, is limited to the model number 902. The model number 902 is one of side view LEDs at 0.7 mm of thickness for backlights for LCDs of mobile phones, etc. The discontinuation of the product has already been announced to the public.

Seoul Semiconductor has endured, thus far, Nichia's false and misrepresenting statement and libel, which are not at the very heart of the patent issue. Seoul Semiconductor has finally concluded that the only way to deter on-going false statements from Nichia and to uphold the truth is to file a lawsuit, which would show Seoul Semiconductor's firm resolution.

Last year Seoul Semiconductor sent a courtesy letter to give Nichia an opportunity to correct the false statements. However, instead of correcting its wrongful activities, Nichia replied by filing a defamation lawsuit against Seoul Semiconductor on December 28, 2007.

Nichia, at the beginning, claimed the payment of damages for the amount of millions of dollars in the US design patent lawsuit. Here are examples of false statements that Nichia has made to the public:

1. "$250 damage award rather than $62" (Untrue);
2. "The injunction will ban the sale of 902 LEDs and any other Seoul
products that infringes Nichia's patents"(Untrue).

Seoul Semiconductor cannot get along with Nichia's false and wrongful activities anymore. Seoul Semiconductor is taking any and all necessary steps to prevent Nichia from further distortion of the truth to the public.

As a world leading company, Seoul Semiconductor strongly believes that a company's success relies on its morality and integrity. Regardless of Nichia's behavior, Seoul Semiconductor will continue to fulfill its duty as a public company, to conduct business in a forthright and honest manner, to protect the interest of its investors and to provide a better value to the world.

About Seoul Semiconductor

Seoul Semiconductor, the world's leading LED manufacturer, has been named to Forbes and BusinessWeek's lists as one of the most promising Asian companies. Its product, Acriche, was named as "Product of the Year 2006" by Elektronik, one of the most prestigious electronics magazines in Europe. Seoul Semiconductor's primary business areas are LED packaging and custom module manufacturing. It provides a full range of LED products including AC-driven semiconductor light source, Acriche, High-brightness Power, Side View, Top, Chip, Lamp and High Flux LEDs, and custom type modules. Applications for the company's LED products include general lighting, signage, back lighting for mobile phones, TVs, notebook computers, automotive lighting, home appliances, signals, etc. Seoul Semiconductor reported US$200 million in sales in 2006. It has 1,251 patents and 100 licenses as of June 30, 2007. Seoul Semiconductor has 18 branches including 3 overseas corporate offices. Its products are also represented worldwide by more than 90 distributors.

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