Utilizing patent analysis to explore the cooperative competition relationship of the two LED companies: Nichia and Osram

This study used patent analysis to explore the co-opetition behavior between the two light emitting diode (LED) manufactures, Nichia and Osram, from the two critical technological fields in the LED industry: LED components and phosphor. The results of patent analysis indicated that Nichia had advantages in the field of LED components, while Osram had advantages in the field of phosphor. Therefore, there existed cooperation opportunities for the two opponents in the LED industry, because their technological capabilities were partially complementary. Therefore, Nichia and Osram were willing to make a compromise to solve the patent litigations between them and further agreed to offer cross-licensing of patents for each other. Their strategic interaction was changed from full competition to co-opetition which is win–win for them. This study demonstrates that patent analysis is a useful tool for R&D management and technical analysis, and the results of this study can provide a valuable reference for managers in formulating patent portfolio.