U.S. LED manufacturer Cree’s recent lawsuit against Unity Opto and its luminaire client Feit Electronics will not impact the company’s revenue performance in 2015, a UDN report cited Unity Opto Spokesperson Jacky Wen saying.

The company has not received the complaint yet, but since commercial litigations and rulings can take a very long period, it will have little impact on Unity Opto’s export shipments or performance this year, said Wen.

Based on Unity Opto’s evaluations, Cree’s public announcement of the filed complaints with the U.S. International Trade Commission (ITC) and the U.S. District Court for the Western District of Wisconsin against Feit Electric and its Taiwanese supplier, Unity Opto Technology is a commercial litigation aimed to cause business interference, said Wen. The Taiwanese LED manufacturer still needs to confirm the scope of the patents involved in the complaint, which alleged Unity Opto of infringing patents related to LED chip, package, luminaire design and operations. Cree’s decision of publicizing the lawsuit online, indicates the actual scope is probably limited, and mainly directed to cause business interference.

The complaint is primarily targeting Unity Opto’s LED bulb client Feit Electronic for infringing eight LED patents. Unity Opto was also affected because it supplies most of the LED package and designs involved. Wen emphasized the company respects intellectual property rights, and its exported products meet international product standards and regulations.

“Cree’s strategy is not surprising,” said Roger Chu, Research Director of LEDinside. “The company monopolized the U.S. LED lighting market in the past, but has seen its profitability eroded by competing traditional U.S. lighting manufacturers. As more U.S. traditional lighting manufacturers transit into the LED lighting industry, many are turning to Asian OEMs to lower LED luminaire prices. ”

“Therefore, Cree has chosen patent infringement lawsuits as a strategy to raise these competitors manufacturing costs by forcing them to use patented LED products,” explained Chu. “Moreover, Cree can receive patent loyalties from these Asian LED manufacturers.”

Cree’s patent lawsuit strategies to oust competitors in the North America market was also confirmed by Wen. The lawsuit indicates Unity Opto’s LED bulb good revenue performance in North America has made it a growing threat to competitors, said Wen.

(Additional Edits: Judy Lin, Chief Editor, LEDinside)