In March last year, the Shenzhen Municipal Government suddenly abolished the implementation of the Shenzhen LED Industry Development Plan.
A stone shocked thousands of waves. As the core base of the national LED industry, Shenzhen has attracted the attention of the whole industry. The abolition of planning has led many people to speculate whether the Shenzhen government does not want to support the LED industry. Although the Municipal Development and Reform Commission explained that the abolition was due to the duplication of some policies in the Plan and other policies, this action has forced people to face the development of the Shenzhen LED industry in recent years.
The LED industry in Shenzhen began in the early 1990s. Together with the momentum, the entire industry has exploded, almost occupying half of the national LED industry. According to statistics, Shenzhen has nearly 2,000 companies engaged in research, development, production and application of LED technology and products, accounting for about 30 LED companies nationwide. Many domestic enterprises have begun to attach importance to patent protection in the development. An LED video light appearance patent of Fuzhou Image Equipment Co., Ltd. was infringed by an anonymous merchant of Alibaba, and then entrusted the domestic well-known intellectual property service agency Lianrui Group to conduct an infringement investigation. The agency not only provided professional and comprehensive intellectual property legal services, but also successfully maintained the company's product patents. It also tailored the company's intellectual property risk prevention and control strategy to minimize losses.
However, behind the expansion is often a bubble. Behind the prosperous scene of the LED industry in Shenzhen, the crisis of development is hidden.
Since the second half of 2011, the export orders of LED companies have dropped sharply. Shenzhen LED enterprises have begun to show signs of bankruptcy. In 2011, nearly 100 companies closed down. In 2012, more than 80 companies closed down, and Shenzhen’s well-known LED display companies with assets exceeding 100 million yuan have visions. The company was declared bankrupt because of the break of the capital chain. Shenzhen LED industry has entered a downturn.
The reason is nothing more than the imbalance between the industrial chain structure and the lack of core patents. Among the nearly 2,000 LED companies in Shenzhen, most of them are in the packaging and application fields in the middle and lower reaches of the industry chain. LED chips and device products are mostly concentrated in low-power, medium- and low-end products. The upstream high-value-added link technology lags far behind Europe and America. In other countries, technology, processes, equipment, and key raw materials are usually required to be introduced. The lack of core technology has greatly limited the development of the LED industry in Shenzhen.
On the other hand, the lack of core technology directly leads to the lack of core patents. Occupy the European and American companies that developed the opportunity to monopolize the core patent technology upstream of the LED industry, and arranged a strict patent network. Shenzhen LED enterprises can only wait and see outside the network. Unable to break through this layer of patent barriers, Shenzhen LED companies can only rely on the alms of the upstream market to snatch a small piece of cake in the middle and lower reaches of the market, and most of the profits must be taken away by the patent head. With the development of the LED industry, Chinese LED companies began to touch this thick layer of patent barriers after they began to enter the foreign market. More and more patent litigations were encountered, core patents were missing, industrial chain structure was unbalanced and strategic expansion. The contradiction between them has become more and more prominent. How to coordinate this contradiction has become a key point for the Shenzhen LED industry to develop in depth.
How to get out of the predicament of Shenzhen LED industry? Lianrui Group lawyers believe that the Shenzhen LED industry must go out of the downturn and rely on intellectual property for self-help. In view of the most prominent problems in the industry, LED enterprises in Shenzhen and even the whole country should increase technical support, increase investment in research and development, obtain patent breakthroughs in key technologies, establish their own patent networks, and strive to break patent barriers and gain a place in the upstream of the industrial chain.
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