Market Overview

Seoul Semiconductor Sues Big-Box TV Retailer for Infringement of 15 LED Patents in U.S. Court

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Seoul
Semiconductor
(KOSDAQ:046890), a leading global innovator of LED
products and technology, announced that it has filed a patent
infringement lawsuit in the United States District Court for the Eastern
District of Texas, together with its affiliate, Seoul Viosys Co., Ltd.
(collectively "Seoul"), against Fry's Electronics ("Fry's"), a retail
company of consumer electronics. The patent litigation concerns Fry's
sales of various LED television products.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20180904005182/en/

Seoul Semiconductor's Key Patented Technologies for TV Backlight (Graphic: Business Wire)

Seoul Semiconductor's Key Patented Technologies for TV Backlight (Graphic: Business Wire)

Fry's is one of the largest big-box retailer of consumer electronics in
the United States. It has 17 mega-stores in California and 14,000
employees. Fry's currently offers more than 300 LED television models
featuring twenty-five different global TV brands.

In its complaint, Seoul asserts that certain LED TV products in Fry's
stores infringe 15 of Seoul's LED patents that relate to manufacturing
processes for LED backlight units. Seoul's patented technologies cover
LED TV backlight unit structures, LED backlight lenses for providing
uniform illumination of LED lights, UCD technology for high color gamut
displays, LED packaging, LED chip fabrication, and LED epitaxy. These
are significant technologies to improve the color, brightness, and
duration time of all LCD light sources such as smartphones, laptops,
tablet PCs and monitors as well as TVs.

In particular, optical lens technology for offering uniform light
distribution on TV or monitor displays is one of the most significant
LED backlight technologies that Seoul has developed since the earliest
days of LCD backlights.

In order to protect that patented technology, Seoul actively enforces
its patent rights against suspected-infringers. For example, in 2016,
Seoul prevailed in U.S. federal court against Japanese lens maker,
Enplas, with a judgment finding that Enplas willfully infringed one of
Seoul's LED backlight lens patents, as well as one of Seoul's LED
backlight system patents. Over the past few years, Seoul has also
pursued patent litigation for infringement of LED backlight lens and
other components patents against North America TV maker Craig
Electronics and Curtis International and successfully obtained patent
royalties from both companies.

UCD technology (KSF) is another of Seoul's core LED backlight
technologies that enables significant improvement of color gamut of LCD
displays such as TVs and smartphones, which has been co-developed with a
Japanese corporation for a long time. By enabling green and red light
generated with KSF phosphors, UCD technology delivers 92-93% NTSC, which
is higher than that of OLED.

Prior to the filing of its most recent litigation, Seoul delivered
notices of patent infringement to various global TV brand makers, as
well as their suppliers who manufacture TV modules or TV sets in various
regions of Asia, including China and Taiwan, through OEM or ODM. Seoul
advised these TV makers and manufacturers that they needed to stop using
LEDs and/or other components that likely infringe Seoul's LED backlight
lens and UCD technology patents.

"For young entrepreneur and small business entities to develop
innovative products under fair competition culture, it is necessary for
market participants to respect other companies' intellectual property
rights," said Sam Ryu, Seoul's Vice President of IT Business. "To
prevent distribution of suspected-infringing products, we are thoroughly
investigating various global TV brand products that may infringe our
patents. If these companies continue to use products that are suspected
of infringement, despite our requests to stop, we will take all the
necessary legal actions to the end."

About Seoul Semiconductor

Seoul Semiconductor develops and commercializes LEDs for automotive,
general illumination, specialty lighting, and backlighting markets. As
the fourth-largest LED manufacturer globally, Seoul Semiconductor holds
more than 12,000 patents, offers a wide range of technologies, and
products such as SunLike – delivering the world's best light quality in
a next-generation LED enabling human-centric lighting optimized for
circadian rhythms; WICOP – a simpler structured package-free LED which
provides market leading color uniformity and cost savings at the fixture
level, providing high lumen density and design flexibility; NanoDriver
Series – the world's smallest 24W DC LED drivers; Acrich, the world's
first high-voltage AC-driven LED technology developed in 2005, including
all AC LED-related technologies from chip to module and circuit
fabrication, as well as multi-junction technology (MJT); and nPola, a
new LED product based on GaN-substrate technology that achieves more
than ten times the output of conventional LEDs. UCD constitutes a high
color gamut display which delivers more than 90% NTSC.

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