Becoming a licensee

Joining the EnabLED Licensing Program for LED Luminaires and Retrofit Bulbs is easy. Signify 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.

Steps of the process

1. Meet with the Signify IP Licensing representative
One of our licensing experts will be assigned to your company so you have a personal contact with Signify. 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.
Signify specialists are available to help you analyze your product portfolio and determine whether your products use Signify patents available under the licensing program.

3. Choose Type of agreement
You may choose between two types of agreement which lead to two types of royalty payment methods. One is a standard, product-by-product royalty approach based on our program rates, 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.

• 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 experts 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.

• 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 the 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 through the agreed flat rate period.

Qualified components / exemption of royalty

If you use the components for some or all of your LED-based luminaires from Qualified Suppliers (QS), 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. 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 Signify 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 circuitboards); 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.

• Who are the Qualified Suppliers?

The following companies are qualified suppliers: Signify, Lumileds (only for light engine modules), Osram GmbH and 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.