December 27, 2024
Court Orders Distributor to Recall & Destroy Signify Products
Seoul Semiconductor claims legal action in Germany prompts Philips product recall
According to Seoul Semiconductor, a German district court has ordered the recall and destruction of specific lighting products following a patent infringement case filed by the company. The recall involves products manufactured under the Philips brand, with the court order reportedly directed at Conrad Electronic, a European distributor.
Seoul Semiconductor announced that the District Court of Düsseldorf ruled in its favor on November 19. According to Seoul Semiconductor, the recall involves products manufactured under the Philips brand that have been distributed since March 2017.
As clarified by The Wall Street Journal and Reuters, the court is requiring Conrad Electronic, not Signify (maker of the accused Philips products), to cease sales of certain lighting products, recall affected items and destroy inventory. The court also imposed fines of up to €250,000 per violation for non-compliance, as per Seoul Semiconductor's statement.
Seoul Semiconductor claims the products infringe on its patents related to technology for achieving a Color Rendering Index (CRI) of 70 or higher. The lighting products at issue were branded as Philips — a brand of Signify — but a Signify spokesperson stated that it was not named as a defendant in the case.
A spokesperson for Signify clarified its position in the matter, stating:
“Signify is not a defendant in the patent infringement case, which concerns Seoul Semiconductor vs. Conrad Electronic. No ruling has been given against Signify with regard to the patent infringement case, and Signify has not been ordered to recall any Philips-branded products.”
In intellectual property cases, it is common for patent holders to target the distribution point rather than the actual manufacturer of the accused products. This strategy often yields higher monetary awards, as sales prices and consequently court damages are typically greater at the distribution point in the supply chain.
Was the Seoul Semiconductor Announcement Misleading?
Seoul Semiconductor’s announcement headline, “Philips Lighting Products Ordered to Recall 7-Year-Old Items,” may be confusing to some and may suggest that Philips was subject to the recall order. Consequently, Reuters initially published a headline stating, “Signify ordered by court to recall products infringing on patents, Seoul Semiconductor says.” The headline and article were later updated, with the article clarifying that Conrad Electronic was the actual recipient of the court order.
Seoul Semiconductor’s announcement prominently referenced Philips or Signify seven times throughout the written announcement, including the headline and first sentence, emphasizing the manufacturer of the allegedly infringing products. In contrast, Conrad Electronic, the actual defendant in the case and recipient of the court order, was mentioned only once and not until the third paragraph of the press release.
This delayed and limited mention of Conrad Electronic, combined with repeated references to Philips/Signify, may create the impression that the reported recall and destruction order was directed at Signify, rather than the distributor Conrad Electronic.
Patent Validity Case Fuels Broader Dispute
In a related case, the German Federal Patent Court reportedly ruled on December 17 to uphold the validity of the patents cited by Seoul Semiconductor. According to Seoul Semiconductor, this strengthens its intellectual property position, asserting that the technology in question applies to a wide range of markets, including lighting, automotive, and IT.
Signify has disputed the validity of the patents, emphasizing that they have since expired and has initiated a legal case to invalidate them. The company stated, “Signify is of the opinion that these now expired patents are invalid and has begun a patent invalidity case.”
Misleading announcement or not, this appears to be a victory for Seoul Semiconductor — at least for the moment — with potential implications extending beyond the immediate parties of Conrad and Signify to broader European markets. The ruling may also influence Signify's strategies for marketing Philips-branded lighting products distributed throughout the region.
Here in the United States, Seoul Semiconductor currently has ongoing patent litigation against numerous companies, including TCP, Feit Electric, Ace Hardware and Finelite.
