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02/19/08, LSCG.OB : Philips filed patent civil lawsuit against Lighting Science Group; LED Holdings; and LED Effects

Form 8-K for LIGHTING SCIENCE GROUP CORP
29-Feb-2008
Other Events
Item 8.01. Other Events
http://biz.yahoo.com/e/080229/lscg.ob8-k.html

On February 19, 2008, Philips Solid-State Lighting Solutions, Inc. ("Philips") filed (but has not served) a civil lawsuit in the United States District Court for the District of Massachusetts against
(i) Lighting Science Group Corporation (the "Company");
(ii) LED Holdings, LLC ("LED Holdings"); and
(iii) LED Effects, Inc., an entity whose assets were acquired by LED Holdings ("LED Effects")

(Philips Solid-State Lighting Solutions, Inc. v. Lighting Science Group Corporation, et al.).

The lawsuit alleges that the defendants have infringed five (5) related patents.
The complaint does not name any product that is alleged to infringe and provides no specific facts in support of the claims of infringement. The lawsuit seeks injunctive relief and unspecified compensatory and treble damages and attorneys' fees for the alleged patent infringement.

The subject patents are owned in the name of Color Kinetics, Inc. ("CK"), which was acquired by Philips in August 2007.
The Company is reviewing Philips' allegations, but believes they are without merit and intends to dispute them in light of, among other things, the following:


• Since 1994, LED Effects has been designing, developing and selling custom-designed, pulse-with-modulation (PWM) controlled, color-changing LED fixtures and components. As successor to the assets of LED Effects, the Company believes it is (and LED Effects has been since its inception) considered a leader in this fixture and component space, and it continues to develop and sell cutting-edge LED-based products today.

• Prior to Phillips' acquisition of CK, a Philips affiliate conducted extensive due diligence relating to the intellectual property of LED Effects. The Philips affiliate subsequently (i) proposed and consummated a joint development agreement with LED Effects and (ii) proposed a minority investment in LED Effects.

• The Philips affiliate previously contracted with LED Effects to develop and manufacture products in accordance with the Philips affiliate's specifications and using LED Effects' proprietary technology. The Philips affiliate then used such products to compete successfully against CK before CK was subsequently acquired by Philips.

• Since the CK acquisition, Philips has continued to purchase and distribute linear products employing the technology of LED Effects, as indicated on Philips' web site. (www.nam.lighting.philips.com/us/luminaires/products.php).