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The MOCVD Patent War Between Veeco and AMEC

Source： ledinside.com 14 Dec 2017

MOCVD Patent Veeco AMEC

Providers of metal organic chemical vapor deposition (MOCVD) equipment Veeco and AMEC have been exchanging heavy fire this year, filing patent infringement lawsuits against each other in the US and China.

Two major lawsuits—one is from Veeco against SGL Carbon, a US-based wafer carrier technology supplier, and the other from AMEC against Veeco Shanghai—affected trade activities of the two MOCVD firms, most notably in China, as well as Chinese LED manufacturing behemoths that purchase equipment from AMEC, such as San’an Optoelectronics and HC Semiteks.

Here are some updates provided by Veeco about the two litigations:

Veeco vs SGL Carbon

On April 12, 2017, Veeco filed a patent infringement complaint in the U.S. District Court for the Eastern District of New York (“EDNY”) against SGL Carbon, LLC and SGL Carbon SE (collectively, “SGL”), alleging infringement of patents relating to wafer carrier technology used in metal organic chemical vapor deposition (“MOCVD”) equipment. The complaint alleges that SGL infringes Veeco’s patents by making and selling certain wafer carriers to Veeco’s competitor, Advanced Micro-Fabrication Equipment, Inc. (“AMEC”).

On November 2, 2017, the EDNY granted Veeco’s motion for a preliminary injunction prohibiting SGL from shipping wafer carriers using Veeco’s patented technology without Veeco’s express authorization. On November 16, 2017, the EDNY denied SGL’s motion to suspend the preliminary injunction prohibiting SGL’s sale of wafer carriers for use in MOCVD systems made by AMEC. SGL had filed a motion requesting that the court suspend, or “stay,” the preliminary injunction pending an appeal by SGL to the U.S. Court of Appeals for the Federal Circuit (“CAFC”).

The court’s order means that the preliminary injunction, which prohibits SGL from shipping wafer carriers using Veeco’s patented technology, will remain in place during the appeal by SGL. The appeal process at the CAFC usually takes over a year to complete. In its appeal, SGL will bear the burden of convincing the CAFC that the preliminary injunction should be overturned. Appeals of preliminary injunctions are evaluated by the CAFC under the highly deferential “abuse of discretion” standard of review. As a result, Veeco believes that it is highly unlikely that the CAFC will overturn the preliminary injunction, especially in light of statistics showing that a substantial majority of preliminary injunctions are affirmed by the CAFC on appeal. Moreover, Veeco cross-appealed, seeking to broaden the scope of the preliminary injunction.

In the meantime, Veeco’s patent infringement action in the EDNY is proceeding toward trial. In this action, Veeco is seeking a post-trial permanent injunction, monetary damages and other relief.

The MOCVD Patent War Between Veeco and AMEC

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