Patent law­suit sends Giga So­lar shares into tail­spin; fall 3.94 per­cent in trad­ing

The China Post - - TAIWAN BUSINESS -

Shares of Giga So­lar Ma­te­ri­als Corp. ( ), a Tai­wan­based so­lar cell ma­te­rial sup­plier, took a beat­ing Thurs­day af­ter Ger­many’s Her­aeus Hold­ing GmbH filed a patent in­fringe­ment law­suit against the Tai­wanese firm, deal­ers said.

While Giga So­lar said that its op­er­a­tions re­mained nor­mal de­spite the patent in­fringe­ment al­le­ga­tion, its share price still came un­der heavy down­ward pres­sure through­out the trad­ing ses­sion, the deal­ers said.

Shares of Giga So­lar fell 3.94 per­cent to close at NT$536.00 ( US$ 17.18) with 2.18 mil­lion shares chang­ing hands on the over-the-counter mar­ket. Shares of multi-crys­talline so­lar wafer maker Gi­gas­tor­age Corp. ( ), the par­ent com­pany of Giga So­lar, ended down 2.83 per­cent at NT$22.30.

The in­dex of the OTC mar­ket ended up 0.19 per­cent at 135.34 points, while the weighted in­dex on the main board ended up 0.04 per­cent at 9,302.49 points.

Giga So­lar shares en­coun­tered a sell-off soon af­ter the mar­ket opened as in­vestors took cues from a move by Her­aeus’s pho­to­voltaics busi­ness unit to file a law­suit with the In­tel­lec­tual Prop­erty Court in Taipei and dumped their Giga So­lar shares, and the weak­ness con­tin­ued into the end of the ses­sion.

Ac­cord­ing to Her­aeus, Giga So­lar in­fringed on three patents re­lated to the pro­duc­tion of front-side sil­ver met­al­liza­tion paste ma­te­ri­als used for so­lar cell man­u­fac­tur­ing.

With ship­ments of Giga So­lar’s sil­ver met­al­liza­tion paste ma­te­ri­als ex­pand­ing sig­nif­i­cantly, the Tai­wanese firm has taken a 30 per­cent share of the global mar­ket since the end of last year, and the mar­ket an­tic­i­pates that its mar­ket share will grow fur­ther, an­a­lyst said.

As a re­sult, for­eign ri­vals, like Her­aeus, have waged a legal war against Giga So­lar to pre­vent the Tai­wanese firm from tak­ing a greater share of the mar­ket, the an­a­lysts added.

Giga So­lar said that it has not re­ceived any doc­u­ment from the court, but has in­structed lawyers to gain an un­der­stand­ing about Her­aeus’s legal ac­tion.

The Tai­wanese firm said it has strong re­search and devel­op­ment ca­pa­bil­i­ties and has built a large patent port­fo­lio, so it has faith in its abil­ity to pro­tect its in­tel­lec­tual prop­erty rights.

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