One of the world's largest LED lighting manufacturers licenses Color Kinetics' patent portfolio to enable worldwide sales
Color Kinetics Incorporated (NASDAQ: CLRK) today announced the signing of a global licensing agreement with Neo-Neon International Ltd. Neo-Neon will be granted access to Color Kinetics' complete patent portfolio, allowing the continuing development and sale of its LED lighting products worldwide.
Neo-Neon is a China-based, 25-year established manufacturer of decorative and entertainment lighting products that include a growing number of LED-based offerings. Through the agreement, Neo-Neon will be able to offer its customers the capabilities of digital intelligence of Color Kinetics' patents. The license will apply to sales of numerous Neo-Neon products in all markets covered by Color Kinetics' patent portfolio.
"We believe that demand for LED-based lighting products will continue to increase as the technology progresses and becomes even more competitive with traditional light sources," said Ben Fan, chairman, Neo-Neon. "As LED technology grows increasingly important to our business, we believe it's important to align with Color Kinetics, whose pioneering R&D and resulting intellectual property are well established."
"This agreement marks another strong win for our growing licensing business, which leverages nearly ten years of investment, research, and development as the foundation of our IP," said Bill Sims, president and CEO, Color Kinetics. "We believe the market for LED lighting is very broad and can sustain many players. We therefore welcome the opportunity to enable companies like Neo-Neon who want to take advantage of our inventions in the fast-growing LED lighting space. At the same time, this agreement provides a measure of protection for our Lighting Systems business by requiring a special royalty rate on sales of products that resemble our own."
Color Kinetics today holds 58 issued patents that range from core technology and products to high-level control systems, complete lighting systems, applications, environments and methods of use.