Licensing

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Introduction

LED is the future of lighting. It is perfect for today’s energy-conscious world and offers a palette of colors and effects no other form of lighting can match. By licensing our significant patent portfolio, Philips aims to encourage innovation, foster industry growth and allows you to capture opportunities in this expanding market.

  • Gain access to over 200 Philips inventions to build into your products under a single license
    • From basic LED controls to system-level technologies
  • Speed up your product development
  • Reduce time to market
  • Increase sourcing flexibility and cost effectiveness

How can I benefit from the Program?

If you are selling finished LED-based luminaires and / or retrofit bulbs under your brand, you may benefit from a license, allowing you to incorporate Philips’ patented technologies in your products.

Join the Program

Over 500 companies are already licensees, from start-ups to global industry leaders. Join these companies by becoming a licensee under our licensing program, so you can share in the innovative technology and accelerate your business growth.

Are you enabLED?

We are introducing a new logo which licensees can use to show they are a member of the Philips LED Luminaires and Retrofit Bulbs Licensing Program.

The enabLED member logo is an official logo which you can use to make your customers aware of being a member of the LED Luminaires and Retrofit Bulbs Licensing Program. It can be used on your website, catalogue and brochure. It shows your customers that you are an official licensee and can be used by you as part of your communication to the market.

The logo is easy to use on your website or on printed literature. It also incorporates a unique QR code linking to our webpage, which protects your identity as one of our valued licensee members. For more information please contact us.
 

Change minimum royalty rate retrofit bulbs.

March 26, 2015. Licensees of retrofit bulbs, who are fully compliant with the reporting and payment terms of their licenses will now only need to pay 5% on the net revenue with no minimum charge of EUR 0.25* on sales after 1 January 2015.

Until now royalty payments for retrofit bulbs was set at 5% of net revenue with a minimum charge of 25 Euro cents* per bulb. Due to changed market conditions we have decided to remove the minimum of 25 Euro cents* for fully compliant licensees for sales of retrofit bulbs after 1 January 2015.

*Only applicable to and charged on retrofit bulbs for manufactured or sold by licensees in countries where Philips has at least one issued patent covering a feature of the licensed product.

 

Patents

The EnabLED: LED Luminaires and Retrofit Bulbs Licensing Program was launched in 2008. It covers over 200 inventions, which have resulted in more than 1,300 granted patents and over 250 pending patents applications. The Program has extensive geographical coverage.

These patents relate to basic LED controls through to system-level technologies, resulting from extensive Research & Development activities of Philips as well as the former Color Kinetics and TIR companies.

Take a look at the illustration below to see what features typically use Philips patented inventions.

Shorten your time to market

With access to these cutting edge technologies, you gain greater freedom to design optimal solutions for your products. You can shorten your time to market and achieve an excellent balance of cost-to-quality including cost-effectiveness in your component sourcing.

Becoming a licensee

Giving the industry access to innovative technologies and inventions accelerates the growth of new markets and benefits everyone – manufacturers, suppliers and consumers. As a technology leader, Philips has a long heritage of licensing its Intellectual Property (IP) and fostering technological innovation.

How to join

Joining the EnabLED: LED Luminaires and Retrofit Bulbs Licensing Program is easy. Philips licensing specialists operate globally and are ready to respond to your questions. They will work with you on every step, so you can quickly start using our patent-protected technology:

How do we determine royalties?

Royalties are determined in accordance with our program rates, on a product-by-product and country-by-country basis. The same approach for the determination of royalties is available to all licensees.

  1. Meet with Philips IP Licensing representative
    One of our licensing specialists will be assigned to your company so you have a personal contact with Philips. This contact person will explain the Program in detail and answer any questions you may have.
  2. Portfolio Analysis
    We work with you to determine which of your products are relevant and require a license.
  3. Choose between the Flat Rate and Itemized approach for the payment of royalties (the fees for use of Philips patented technologies) and sign the Patent License agreement

In order to protect the confidential information that are exchanged between the parties prior to concluding the license agreement, a mutual, two-sided Non-Disclosure Agreement (NDA) will be signed.

Which of your products require a license?

Philips specialists are available to help you analyze your product portfolio and determine whether your products use Philips’ patents available under the licensing program.

Contact our licensing support team

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Royalties / payment

You may choose between two royalty payment methods. One is a standard, product-by-product royalty approach based on net revenues of relevant products and relevant sales on a country-by-country basis. The other method is a flat rate (weighted average) approach which involves less paperwork. In this approach, the royalty will reflect the average rate over all products sold, taking into account the patent coverage per country of manufacture or sale (as the case may be).

  • Step 1 - Portfolio Analysis

    In both methods, we begin by analyzing your portfolio of LED-based branded luminaires and retrofits to determine which of your products use patents made available in the Philips licensing program.

  • Step two - Option 1: The Standard Approach

    In the standard approach, we list all relevant products, the corresponding royalty rate, and the countries where a royalty payment is triggered.

    Under the license agreement, you will provide on a confidential basis, quarterly reports stating your turnover* for all listed products. The royalty due is calculated on the basis of these turnover data for the relevant calendar quarter.

    If you introduce new products, these may need to be added to the license agreement. You can either assess this yourself or one of our licensing officers may assist you in this analysis. If you conduct a self-assessment, we may still conduct our own analysis to verify its accuracy.

    * The relevant turnover will be based on worldwide sales if at least one invention used in the product is patented in the country where the product was manufactured. Otherwise, we ask for the turnover generated only in countries of sale where the inventions used are patented.

  • Step 2 - Option 2: The Flat Rate Approach

    In this approach, we use the portfolio analysis and your turnover of branded luminaires or retrofits in a reference period (e.g. the previous calendar year) to determine a single percentage flat rate which will apply on a quarterly basis. This approach takes into account the patent coverage in the countries in which you assemble and sell your products. If both luminaires and retrofits need to be covered, two separate flat rates will apply.

    The license agreement will list all relevant brands and will specify an agreed flat rate for a specified number of years. During this period, you will simply report your quarterly turnover for relevant luminaire and retrofit brands. We then determine the royalties due by applying the flat rate percentage to this figure. When the agreed period ends, a new flat rate will be agreed.

    This flat rate will continue to apply even if you introduce new products. In other words, there is no need for any further analysis or paperwork throughout the agreed flat rate period.

    The animation on the right illustrates the flat rate process.

The Flat Rate Approach

Qualified Supplier (QS) components

If you purchase components for some or all of your LED-based luminaires exclusively from qualified suppliers, this will affect the royalty payable. Under the standard approach, you will list these luminaires along with the others in your quarterly report, but the effective royalty rate will be zero. Under the flat rate approach, you also list luminaires which qualify for the QS exemption in your regular report. However, we do not include these luminaires in the calculation of your royalty payment.

Find out more

 

Licensee overview

The companies listed below currently have license agreements with Philips regarding patents available under the EnabLED: LED Luminaires and Retrofit Bulbs Licensing program (in part previously made available under the former Color Kinetics Licensing program):

You can filter the list by choosing one or more application areas or entering a name to search for.

Disclaimer
This database contains names of companies that have entered into a license agreement with Philips covering patents licensed under the Philips LED Luminaires & Retrofit Bulbs Licensing Program (or previously under the Color Kinetics Licensing program). It does not necessarily contain the complete of list of all companies that currently have such license agreements in place. The information in this database has been compiled as accurately as possible at the time of compilation. The contents of all licenses are confidential and the information in this database is based solely upon publically available information regarding trademarks and brands used by a licensee and applications areas addressed by a licensee. Consequently, the contents of this database do not imply or make any statement in relation to any individual product of any licensee.

If you are a licensee and you sell LED luminaires incorporating specific components from qualified suppliers, no royalties in relation to this licensing program will be due on luminaires using only QS components. The QS arrangement only applies to LED luminaires to be used within the scope of the license program (which covers general illumination, architectural and entertainment lighting). The QS arrangement does not apply to retrofit bulbs.

  • Will the QS Exemption Apply?

    Just as for all your products, the first step is to analyze whether your luminaires use invention(s) covered by Philips patents in the relevant countries. If so, a license will be needed. However, these luminaires will be exempted from royalty payments.

    In order to qualify for the royalty exemption, the luminaires need to incorporate the following components from Qualified Suppliers only:

    • all LED light-engine modules (LEDs placed on one or more
       common circuit boards); and
    • all LED drivers; and
    • all components, if any, for controlling the light output of the
       LEDs used in the luminaire.

    They must also meet the condition that the trademark of the qualified supplier(s) is identifiable on each of the above components assembled in the luminaire.
  • What are the Qualified Suppliers?

    There are three qualified suppliers: Philips, Osram and the Zumtobel Group.

  • Can I obtain customized light engines using QS components

    You can ask the qualified suppliers if they can provide components that meet your needs.

 

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