Chinese Giants Pledge To Settle Solar Patent Disputes

China's biggest solar giants, notably Longi Green Energy Technology and Jinko Solar have agreed to end all of their patent litigations globally with each other. The move follows an earlier nudge from the Chinese  government to the industry's solar leaders to get their house in order by refraining from a ruinous price war, driven by overcapacity, that has caused heavy losses to the firms involved. The two firms now say that they will focus on ways to commercialize advanced technologies and explore deeper cooperation.

Countries across the world are building domestic solar manufactiring capacities, from India, to the US and Europe, besides many countries in the Middle east and even Africa now, putting pressure on the huge export engine that is the Chinese solar sector.  Chinese firms, which dominate the solar sector with an over 70% overall share, have used their leadership to target potential competitors outside China as well with patent infringement suits, besides their obvious efficiency and cost advantages in production. 

Longi and Jinko's move to enter into a commercial arrangement on the cross-licensing of some core patents will be a significant move to reduce litigation among Chinese firms. Among non Chinese firms, Hanwha from South Korea, Waaree Energies from India and many others are embroiled in patent disputes with Chinese firms . Trina Solar, another Chinese major, has repeatedly asserted its right to specific TOPcon patents. Maxeon, another Singapore based solar maker has struggled for a long time due to its legal battles.

Waaree Energies, India's largest module maker has an ongoing dispute with Jinko Solar as well as First Solar of the US regarding cell manufacturing. Most patent fights right now revolve around TOPCon manufacturing, where Chinese firms have been the early movers and market leaders. As the industry considers a larger shift to back contact cells in the coming few years, expect patent pressure on non-Chinese firms to ramp up further.  Even the inverter market has seen its share of patent disputes, with European firms doing the suing there. 

Jinko had filed six patent lawsuits against Longi in countries such as China, Japan, and Australia since last December linked to TOPCon battery tech and component design and manufacturing. Longo had filed counter suits in China as well as the US against Jinko. As listed firms, stock prices of both firms have suffered in the past year due to rising losses and other issues including patent disputes.