Intellectual property has become a “value depression” in the LED display industry, and competition is changing from “quantity change” to “quality change”

April 26 is the 20th "World Intellectual Property Day". The theme of this year's World Intellectual Property Day event is "Innovation for a Green Future". The event puts innovation and intellectual property rights that support innovation at the core of creating a green future. Chinese LED display companies must have fresh memories of the "337 Investigation" initiated by American companies in 2018.
In March 2018, Supervision filed a "337 investigation" application to ITC in accordance with Section 337 of the "U.S. Tariff Act of 1930", accusing many Chinese LED display companies and their subsidiaries in the United States of exporting to the U.S. Imported or sold LED display units and their components in the United States are suspected of infringing on their LED modular patents, requesting ITC to issue general exclusion orders, limited exclusion orders and prohibitions.
This dispute caused by patents, for Chinese LED display companies, is actually an intellectual property defense battle involving significant interests in the US market.

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For the LED display market that has been severely impacted by the new crown pneumonia epidemic, competition at the level of intellectual property rights this year will likely become unprecedentedly fierce. The banner of patents to suppress competitors and grab market share may become more Enterprise choice.

LED displays produced in China account for more than 80% of the global market share. This huge scale advantage has forced many foreign LED companies to withdraw from competition with Chinese display companies, and some foreign companies have turned to high-end LED display applications. Pioneering, such as cinema. Samsung movie screen is one of the typical.
At present, Chinese LED display companies have almost no rivals in the middle and low-end markets, and their huge industry and scale advantages allow Chinese companies to maintain absolute competitive advantages. With the advancement of technology and technology, Chinese companies are not satisfied with the low-end market, but are also moving toward the high-end field. The future confrontation between Chinese companies and foreign companies will involve broader market competition. The competition of intellectual property rights using patent barriers as a weapon will become more prominent.
The war on LED patents is mainly concentrated on the upstream chip side. Patent disputes directly against LED display screens are rare in the world. The "337 Investigation" incident that occurred in 2018 shocked the entire Chinese LED display industry. It gave Chinese LED display companies a very profound intellectual property "education class", prompting Chinese companies to pay more attention to intellectual property protection.
In the domestic market, the vast majority of LED display companies have experienced the development stage of "patent streaking". In the initial accumulation period of the industry development, each company only seeks production development, and the related patent layout is mostly reduced to the decorations of the company's face, and the company is in a brutal and extensive development.
However, as the market continues to expand and companies continue to go international, their demands for intellectual property protection are becoming stronger. Intellectual property is the moat of enterprise development. Without the protection of patent-related intellectual property rights, enterprises are prone to be attacked by patent barriers in the process of opening up the market. 

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In recent years, disputes between domestic display companies due to patents have occurred from time to time. However, due to domestic intellectual property protection is not perfect, and there are companies that copy my products, I copy his products’ mutual "Copying phenomenon", as a result, disputes involving intellectual property rights often lead to difficulties in protecting corporate rights due to various factors. Fortunately, with the overall progress of the industry in terms of intellectual property rights, more and more companies have begun to say "no" to infringement. At the beginning of this year, there was an incident convicted of trademark infringement in the industry. In January 2020, Unilumin Technology issued a notification statement on the trademark counterfeiting incident: On December 12, 2019, a photoelectric company in Jinhua City, Zhejiang Province was suspected of selling LED displays with counterfeit "Unilumin" and "Unilumin" trademarks. The person in charge, Jin Mou, was criminally detained by the Wucheng District Branch of the Jinhua Public Security Bureau.

In the fierce market competition, some illegal companies try to profit by infringing on the intellectual property rights of others. On the other hand, as more and more companies "awaken" in the protection of intellectual property rights, there will be more Of enterprises took up the weapon of law to protect their own interests. It is foreseeable that more related cases will occur in the future.
In fact, the awareness of intellectual property protection of Chinese companies has been continuously improved in recent years. This can be confirmed by the number of patent applications provided by Chinese companies to the World Intellectual Property Organization (WIPO). WIPO stated on April 7 that in 2019, China surpassed the United States to become the country with the largest number of international patent applications under the organization's Patent Cooperation Treaty (PCT). According to a press release issued by WIPO on the 7th, China filed 58,990 patent applications under the organization's PCT framework in 2019, surpassing the 57,840 filed by the United States and became the largest user of the PCT. In a press release, WIPO Director General Gurry stated that in 1999 the organization received 276 patent applications from China, and in 2019 this number soared to 58,990, a 200-fold increase in 20 years.
While the awareness of intellectual property protection has increased, my country has also been increasing its efforts to increase intellectual property protection. In fact, we can also feel this in our daily life. In the past, we can basically realize this for free when we listen to songs on a certain music software or watch a movie on a certain website. However, in the past two years, the most obvious feeling is , More and more music, film and television works need to pay before they can get the opportunity of audiovisual enjoyment. In the past, companies may have faced difficulties in defending their rights, but now this situation is constantly improving.
Intellectual property is the lifeblood of an enterprise, a national strategic innovation resource, and the main way to promote economic growth. The protection of intellectual property rights is a need to promote the construction of an innovative country, and it is also a need for China to fulfill its international obligations. Judging from the information released by the Supreme People’s Procuratorate, the procuratorial organs prosecuted less than 200 people for crimes of intellectual property infringement in 1999 to more than 11,000 in 2019, an increase of 56 times. The reason for the rapid increase in the number of cases is not only due to the country's rapid economic development and continuous improvement of the legal system, but also due to the fact that law enforcement and judicial organs continue to increase their crackdown.
In November 2019, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council issued the "Opinions on Strengthening the Protection of Intellectual Property Rights". In the future, my country's intellectual property protection work will surely be further improved. Related rules and regulations will crack down on infringement and other illegal industries The intensity and punishment will also become stronger. Under the simultaneous implementation of multiple measures, my country's intellectual property protection will be further strengthened.
Therefore, improving the awareness of intellectual property protection and increasing the development of intellectual property rights are also the basic requirements for LED displays in the new era.
The current LED display industry is facing technological iterations. China's LED display industry represented by small pitches is constantly developing towards smaller pitches, and fine pitch displays have gradually become the direction of industry development. Made in China is on the road of transformation and upgrading, and LED displays are also facing key nodes in industrial upgrading.

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In general, the awareness of intellectual property protection in China's LED display industry is increasing, and intellectual property has become a depression of value for LED displays. Chinese LED display companies have gone through the original accumulation period and are now entering the construction period of the property rights system. In the past, when faced with intellectual property rights infringements, companies were generally afraid of trouble, and the capital cost of rights protection often caused companies to take a tolerant attitude in the face of infringements. In part, its value will be more fully reflected. In this regard, we can also see the important role of intellectual property rights in market competition from Unilumin’s trademark rights protection. The establishment and maintenance of its well-known trademarks, its corporate brand image and brand value, all demonstrate the value of intellectual property rights.
In the future, the development of the LED display industry will no longer win by "quantity", and will enter a development model driven by innovation. Innovation requires intellectual property rights. The protection of intellectual property rights is to protect innovation. And innovation will become the foundation of the development of LED display companies. In the future, the competition of LED display companies will ultimately be the competition of intellectual property rights. Therefore, increasing the construction of intellectual property rights and building a complete intellectual property protection system for LED display enterprises are related to the future of the LED display industry. Enterprises must give full attention to them. Only in this way, the future of Chinese LED display enterprises will be better!


Post time: Sep-25-2020

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