December 20, 2016: DURHAM, N.C. — Cree, Inc. (Nasdaq: CREE), a leader in LED lighting, announced today that it has reached a confidential settlement in its patent infringement and false advertising lawsuit with Feit Electric Company Inc. The settlement ends U.S. International Trade Commission (“ITC”) investigation No. 337-TA-947 (“Certain Light-Emitting Diode Products and Components Thereof”) against Feit and its Asian supplier, Unity Opto Technology Co., Ltd. and the corresponding lawsuit in the U.S. District Court for the Western District of Wisconsin. The agreement also ends Feit’s claims against Cree in litigation filed in U.S. District Court for the Middle District of North Carolina. As part of the settlement, Feit and Cree have entered into a royalty-bearing license agreement to the Cree patents asserted in the ITC case and in Wisconsin. Feit will pay Cree a license issue fee and ongoing royalties as part of the license agreement, and Cree will receive a license to the Feit filament panel patents. The remaining terms of the agreement are confidential.
“Cree has invested over $1.2 billion in R&D over the past 10 years to create fundamental technology that has enabled the LED lighting revolution, and it is our obligation to protect our intellectual property,” said Chuck Swoboda, Cree Chairman and CEO. “This settlement and license agreement recognizes the value of our pioneering technology and ensures we are properly compensated while protecting consumers and Cree shareholders.”
Cree has secured patents for its innovations that are hastening the adoption of energy-efficient technology since the company’s founding in 1987. Cree’s licensing program, which includes over 20 licensing partners, allows other companies to use its proprietary technology, and supports these organizations’ pursuit of new markets and products. Where the license has been publicly announced, Cree licensees are listed on http://www.cree.com/About-Cree/Licensing/Licensees.
Business Outlook Update:
While the financial terms of the license agreement are confidential, as a result of the settlement, Cree now targets exceeding its previously announced revenue, net income and EPS targets for its second quarter of fiscal 2017 ending December 25, 2016. Cree will report its second fiscal quarter results and third quarter business outlook on January 24, 2017.
About Cree, Inc.:
Cree is a market-leading innovator of lighting-class LEDs, lighting products and semiconductor products for power and radio frequency (RF) applications. Cree believes in better light experiences and is delivering new innovative LED technology that transforms the way people experience light through high-quality interior and exterior LED lighting solutions.
Cree’s product families include LED lighting systems and bulbs, blue and green LED chips, high-brightness LEDs, lighting-class power LEDs, power-switching devices and RF devices. Cree’s products are driving improvements in applications such as general illumination, electronic signs and signals, power supplies and inverters.
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