Regarding the Conclusion of the Patent Litigations with Hamamatsu Photonics K.K.

2024-7-3

The patent litigations¹ (hereinafter collectively referred to as "the litigations") filed against us in 2018 by Hamamatsu Photonics K.K. (hereinafter referred to as "HPK") concerning our laser dicer products have concluded.

HPK had been our partner in the joint development of laser dicers for many years, collaborating in areas ranging from market development to equipment development and sales activities. In court, we argued that the development, manufacture, and sales activities of our products (the ML300 series, ML200 series, hereinafter referred to as "the former products") were based on an agreement with HPK. However, regrettably, we were unable to convince the courts of our position.

However, we were able to obtain judgments in the appellate courts regarding the products incorporating our technology (the tracking improved auto-focus function) which we independently developed after the litigations were filed. The courts’ judgements were that neither of HPK's two patents² were infringed by our products. Additionally, the amount of damages we were to bear was significantly reduced.

It is very significant that HPK's claim on the auto-focus function, which is a major feature of the device, was rejected and our company's own technological development was recognized. In addition, the term of all the patents in dispute has expired and all of the disputed laser dicer products (the former products) have been completely discontinued. In view of this, we have decided not to pursue non-infringements in the unresolved litigation cases³ further before the Supreme Court.

We take seriously the situation of having being sued for patent infringement by a joint development partner. We continue to serve our customers, having switched to selling successor models (the ML3200 series, ML2200 series), which have been perfected with our independently developed technology. Furthermore, the term of all relevant HPK patents relevant to the former products which we had previously sold has expired, so they can continue to be used.

In order for our customers to use our products with confidence, we will continue to pay due respect to the intellectual property rights of other companies and release superior products developed with our independent technology.

¹Tokyo District Court, Heisei 30 (Wa) 28929 (Intellectual Property High Court, Reiwa 3 (Ne) 10101), Tokyo District Court, Heisei 30 (Wa) 28930 (Intellectual Property High Court, Reiwa 5 (Ne) 10052), Tokyo District Court, Heisei 30 (Wa) 28931 (Intellectual Property High Court, Reiwa 5 (Ne) 10037)
²Japanese Patent No. 4601965 and No. 4509578.
³Intellectual Property High Court, Reiwa 5 (Ne) 10052, Intellectual Property High Court, Reiwa 5 (Ne) 10037.