Oppositions, Infringement and Restrictions on the Use of Intellectual Property Rights
First written in FY2018. 10 of 24 entries say "Worsened", first in FY2020-Q2. Latest entry: FY2025.
Optoelectronics moved to the "Worse" side of this theme in 2022, 2 years after the typical company in this theme (2020).
1 other company's latest entry also says "Achieved".
- FY2025AchievedAnnual report
「Following careful and repeated negotiations with HONEYWELL, the Company entered into a settlement agreement on 23 September 2025 (U.S. time), effective 13 August 2025 (U.S. time), and accordingly reversed the provision for litigation losses during the consolidated fiscal year.」
The Company entered into a settlement agreement regarding the ongoing litigation with HONEYWELL over the alleged breach of royalty payment obligations and reversed the ¥853 million provision for litigation losses. - FY2025-H1MitigatedAnnual report
「Provision for litigation loss 853,000 814,000」
The provision for litigation losses decreased from ¥853 million at the end of the previous fiscal year to ¥814 million. However, the litigation-related risk itself continues to be disclosed as a material event or other matter related to the going concern assumption. - FY2024WorsenedAnnual report
「We have been sued by HONEYWELL INTERNATIONAL, INC. and 2 other companies (collectively, “HONEYWELL”) for damages arising from alleged non-performance of royalty obligations.」
The litigation involving HONEYWELL continued, and the provision for litigation losses increased from ¥832 million at the end of the previous fiscal year to ¥853 million. - FY2024-Q2WorsenedAnnual report
「Provision for litigation loss 832,000 887,000」
The provision for litigation losses related to the HONEYWELL litigation increased by ¥55 million, from ¥832 million at the end of the previous fiscal year to ¥887 million. - FY2024-Q1WorsenedAnnual report
「In addition, selling, general and administrative expenses increased by ¥26 million year on year due to litigation costs and other expenses.」
Costs related to the ongoing litigation involving HONEYWELL continued to be incurred, resulting in a ¥26 million year-on-year increase in selling, general and administrative expenses. The provision for litigation losses also reached ¥853 million. - FY2023WorsenedAnnual report
「Provision for litigation loss 786,000 832,000」
The provision for litigation losses related to the litigation with HONEYWELL increased from ¥786 million to ¥832 million, and costs associated with the court proceedings and appeal also increased. - FY2023-Q3WorsenedAnnual report
「The main factor was a ¥530 million increase in selling, general and administrative expenses due to a substantial increase in legal fees related to the litigation with HONEYWELL.」
Higher legal fees associated with the litigation with HONEYWELL resulted in a ¥530 million year-on-year increase in selling, general and administrative expenses and were the main cause of the operating loss. - FY2023-Q2WorsenedAnnual report
「Selling, general and administrative expenses increased by ¥286 million year on year, mainly due to higher legal fees associated with the litigation and other factors.」
Higher legal fees as the ongoing litigation progressed resulted in a ¥286 million year-on-year increase in selling, general and administrative expenses. - FY2023-Q1WorsenedAnnual report
「Selling, general and administrative expenses increased by ¥115 million year on year, mainly because legal fees increased as the litigation proceedings progressed.」
Legal fees increased as the ongoing litigation progressed, driving an increase in selling, general and administrative expenses. - FY2022Expected Completion of HONEYWELL Litigation Proceedings DisclosedAnnual report
「The proceedings in the litigation with HONEYWELL in the United States are expected to conclude around the third quarter.」
While the litigation loss provision increased to ¥786 million, the company indicated that the proceedings in the ongoing litigation with HONEYWELL were expected to conclude around the third quarter. - FY2022-Q3Litigation loss provision increasedAnnual report
「The main factor was a ¥646 million increase in total current liabilities, resulting from a ¥537 million increase in notes and accounts payable and a ¥145 million increase in the litigation loss provision, among others.」
The litigation loss provision increased by ¥145 million from the end of the previous consolidated fiscal year to ¥785 million. - FY2022-Q2Litigation loss provision increasedAnnual report
「Litigation loss provision 640,000 726,000」
The litigation loss provision increased from ¥640 million at the end of the previous consolidated fiscal year to ¥726 million. - FY2022-Q1Litigation loss provision increasedAnnual report
「Litigation loss provision 640,000 654,000」
The litigation loss provision increased from ¥640 million at the end of the previous consolidated fiscal year to ¥654 million. - FY2021MaterialisedAnnual report
「We have been sued by HONEYWELL INTERNATIONAL, INC. and 2 other companies (collectively, “HONEYWELL”) for damages arising from alleged non-performance of royalty obligations.」
Following the settlement of the U.S. and European litigation, HONEYWELL newly filed a damages claim alleging breach of the settlement agreement, and a litigation loss provision of ¥640 million was recorded. - FY2021-Q3RestatedAnnual report
「In addition to the increase in revenue described above, the patent infringement lawsuit filed by U.S.-based HONEYWELL was settled on 10 February 2021, resulting in a substantial reduction in litigation costs, which was a major factor.」
The company again disclosed that HONEYWELL’s patent infringement litigation was settled on 10 February 2021 and that litigation costs had declined significantly. - FY2021-Q2RestatedAnnual report
「The main factor was the substantial reduction in litigation costs following the settlement on 10 February 2021 of the patent infringement lawsuit filed by U.S.-based HONEYWELL.」
The company again disclosed the settlement of the U.S. HONEYWELL patent litigation on 10 February 2021 as a factor contributing to improved earnings. - FY2021-Q1AchievedAnnual report
「Although the European litigation proceedings continued without agreement following the settlement of the U.S. litigation, a settlement agreement was signed on 10 February 2021 (U.S. time).」
Following the U.S. litigation, a settlement agreement was also signed on 10 February 2021 regarding the European litigation. Under the agreement, HONEYWELL would withdraw its claims upon the initial payment of license fees, resolving the ongoing patent litigation through settlement. - FY2020-Q3WorsenedAnnual report
「However, although we have held careful discussions with HONEYWELL through today, no agreement has been reached. The estimated total of legal fees and other costs for the European litigation proceedings was approximately EUR 3.5 million, equivalent to approximately ¥411 million.」
While the U.S. litigation was withdrawn through settlement, no agreement was reached with HONEYWELL regarding the European litigation, and the expected litigation-proceeding costs of approximately EUR 3.5 million became more specific. - FY2020-Q2WorsenedAnnual report
「Similar litigation was also brought in the Netherlands and Germany by subsidiaries of HONEYWELL, but before we had reviewed all of the complaints, we entered into a settlement agreement regarding the U.S. litigation as described in 1 above, and the claims were withdrawn upon payment of the settlement. However, although we have held careful discussions with HONEYWELL through today, no agreement has been reached.」
While the U.S. litigation was withdrawn following a USD 9 million settlement, no agreement was reached regarding the European litigation filed in the Netherlands and Germany, and a policy of continuing to contest the claims was indicated. Total costs for the European litigation proceedings were expected to be approximately EUR 3.5 million. - FY2020-Q1MitigatedAnnual report
「We will pay HONEYWELL a settlement of USD 9 million, and HONEYWELL will withdraw its claims upon payment.」
A settlement agreement was signed on 7 February 2020 regarding the patent infringement litigation brought by HONEYWELL and its affiliates, resolving the matter through payment of a USD 9 million settlement and withdrawal of the claims. A ¥981 million litigation settlement expense was recorded as an extraordinary loss for the quarter. - FY2019Patent Litigation Resolved Through SettlementAnnual report
「We will pay HONEYWELL a settlement of USD 9 million, and HONEYWELL will withdraw its claims upon payment. In connection with the resolution of this matter, we will record an extraordinary loss of ¥984 million as a settlement expense in the first quarter of the fiscal year ending November 2020.」
The patent infringement litigation brought by HONEYWELL and its affiliates was to be resolved through payment of a USD 9 million settlement and withdrawal of the claims. Litigation-related costs of ¥392 million were incurred during the current period, while the ¥984 million settlement was scheduled to be recorded as an extraordinary loss in the first quarter of the following period. - FY2019-Q3Litigation Procedures and Response Policy Take ShapeAnnual report
「A petition was filed with the U.S. International Trade Commission (the “ITC”) seeking to bar imports into the United States of our products on grounds of patent infringement. The ITC’s decision on this petition was scheduled for December 2020. ② Litigation was filed with the U.S. District Court for the District of Delaware seeking to bar imports into the United States of our products and claiming damages on grounds of patent infringement.」
Regarding the patent infringement litigation brought by HONEYWELL and its affiliates as previously disclosed, the details of the petition for an import ban filed with the ITC and the litigation seeking an import ban and damages filed with the U.S. District Court for the District of Delaware, as well as the expected timing of the ITC decision, were specified. The company intends to respond by asserting non-infringement and patent invalidity, among other arguments. - FY2019-Q2MaterialisedAnnual report
「On 31 May 2019, our group was sued for patent infringement by HONEYWELL INTERNATIONAL, INC. and 2 other group companies, and received the complaint on 19 June 2019 (Japan time). We intend to argue that the relevant products do not infringe HONEYWELL’s patents, including by asserting non-infringement and patent invalidity, and will make other appropriate rebuttals. Although this litigation could affect our group’s future operating results, it is difficult to estimate the impact at this time.」
The previously disclosed risk of third-party intellectual property infringement claims materialized as patent infringement litigation brought by HONEYWELL and its affiliates. The company intends to respond by asserting non-infringement and patent invalidity, among other arguments, and states that it is difficult to estimate the impact on operating results. - FY2018First statedAnnual report
「However, if any of the following intellectual property rights issues arise, they could affect our group’s operating results.」
The company listed opposition or invalidity claims against its intellectual property, infringement claims by third parties, royalty payments and injunctions against use as risks.