According to a filing with the SEC Universal Display has received notification that the Japanese High Court has invalidated a number of claims of inventions in two patents –
|JP3992929 (JP ‘929 patent)||Very high efficiency organic light emitting devices based on electrophosphorescence|
|JP4511024 (JP ‘124 patent)||Highly transparent non-metallic cathodes|
On May 16, 2012 Universal Display learnt that the Japanese High Court issued a decision relating to the JP ‘929 Patent confirming the prior decision of the Japanese Patent Office (JPO) to invalidate the broadest claims in the patent, other narrower claims in the invention where acknowledges as valid. Universal Display are still waiting to receive translated copies of the JPO’s decision, after which the company plans to appeal the decision to the Japanese Supreme Court.
On May 10, 2012, Universal Display learnt that with respect to the JP ‘024 patent, which was the subject of an Invalidation Trial at the JPO as described in the Form 10-Q, the JPO issued a decision to invalidate the broadest claims in the patent, but upheld the validity of certain other claimed inventions in the patent. Universal Display believes the JPO’s decision was erroneous with respect to the broadest claims and the company intends to appeal the decision to the Japanese High Court.
We believe the above decisions should not have a material adverse impact on the Company’s global portfolio of patents and pending applications or our ability to pursue licensing and material sales business opportunities. However, we note that as discussed in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2011 (the “Form 10-K”), we face various risks relating to the protection of our intellectual property, as described beginning on page 16 of the Form 10-K.