Cree LED Reaches Negotiated Settlement with Tomar Electronics Over Alleged Patent Infringement

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Cree LED, a unit of SMART($NASDAQ:SGH) Global Holdings, has reached a negotiated settlement with Tomar Electronics over an alleged patent infringement. Tomar Electronics is said to have used LED components that infringe certain patents of the LED chips and components company. Under the terms of the settlement, Tomar will pay Cree an undisclosed sum and will cease all sales and marketing of the infringing products. This is a positive outcome for Cree, which was seeking to protect its intellectual property.

Stock Price

On Wednesday, shares of Smart Global opened at $17.80 and closed at $18.00, up 2.4% from the previous closing price of $17.60.

VI Analysis

The company’s fundamentals reflect its long term potential, below analysis on SMART GLOBAL are made simple by VI app. Based on VI Risk Rating, SMART GLOBAL is a medium risk investment in terms of financial and business aspects. However, the company’s financial situation has improved in recent years, and its business risk has decreased. You may check out what are the business and financial areas presenting potential risks in our website.

Summary

Under the terms of the settlement, Tomar Electronics will pay Cree LED an undisclosed sum of money and will also be granted a non-exclusive license to Cree’s patents. This settlement resolves all pending litigation between the two companies. This is good news for investors in Cree LED, as it removes a potential legal obstacle to the company’s continued success. Furthermore, the terms of the settlement suggest that Cree’s patents are strong and enforceable, which provides some protection against competitors.