Color Kinetics and Super Vision Reach Comprehensive Settlement Agreement

Super Vision may have finally reached a joint settlement agreement with Color
Kinetics for all patent litigation between the two companies. The settlement
was unexpected because previous Super Vision statements have said that the litigation
was not over. What is most unexpected of all is the sign of mutual respect between
the two companies in the form of a cross licensing agreement.

Under the terms of the agreement: Super Vision will pay Color Kinetics a set
fee to settle all past claims, including the amount awarded to Color Kinetics
by the US District Court for the District of Massachusetts. Super Vision will
also drop its pending infringement claim against Color Kinetics with respect
to US patent 4,962,687 (known as the ‘687 patent), in the US District
Court for the Eastern District of Texas. Color Kinetics will drop its declaratory
judgment claim of non-infringement of the ’687 patent filed in the U.S.
District Court for the District of Massachusetts.

Color Kinetics will grant Super Vision a royalty bearing license to its worldwide
patent portfolio, allowing Super Vision to continue the manufacture and sale
of its LED-based lighting products, including the SaVi line. Super Vision will
grant Color Kinetics a royalty free license to the ’687 patent. And most
importantly, the agreement stipulates that “Super Vision waives its
rights to appeal the final judgment granted to Color Kinetics by the U.S. District
Court of Massachusetts on November 8, 2006. In its ruling, the Court permanently
enjoined Super Vision from manufacturing or selling in the United States any
of the Super Vision products that were held to infringe Color Kinetics’
patents, and all other Super Vision products which are merely colorable variations
of the litigated products. By granting a license, Color Kinetics is allowing
Super Vision to continue the sale of all enjoined products.”

Luxeon High Power

The CEOs of both companies expressed gratitude that the litigation is over.
“Since inception, Color Kinetics has devoted significant resources
to building a strong intellectual property portfolio that reflects the company’s
vision, engineering talent, and multi-million dollar investment in research
and development. We choose not to exclude players from the field, but rather
enable the market through an active licensing program,”
said Bill
Sims, President and CEO, Color Kinetics. “We’re gratified by
the resolution of our litigation with Super Vision, which we believe sends a
strong message to the industry.”
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