SETi: U.S. Court Affirms Principle of Protecting Domestic Patent Technologies, Permanently Bans Infringing Products

In February 2026, a U.S. federal court ruled that Laser Components, a century-old global optics company, had infringed patents held by Sensor Electronic Technology, Inc. (SETi), a U.S.-based company that has focused on opto-semiconductor R&D and manufacturing for the past 25 years. The court ordered a permanent injunction banning the sale of the infringing products. The ruling applies not only to the manufacture and sale of products using the infringing technology, but also to employees and executives who cooperated in or were involved in the infringement.

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The patented technology is regarded as one of the core technologies for the future opto-semiconductor market, which is projected to grow to approximately $50 billion within the next decade—about one quarter the size of the memory semiconductor market. By converting electrical energy into light energy, the technology is expected to be used in AR glasses that could replace smartphones, as well as in high-bandwidth memory (HBM) semiconductors to reduce AI-related power consumption. The essence of the patent lies in optimizing semiconductor current and multi-layer structures to maximize photon generation while minimizing photon loss within the semiconductor—thereby significantly enhancing performance.

A key aspect of this ruling is that the scope of infringement was not limited to specific products. The court prohibited the manufacture, sale, and importation of all products produced using processes similar to the patented technology. The written judgment further clarified that the injunction applies not only to the company’s executives and employees, but also to any third parties who assisted or participated in the infringing activities.

The decision follows the same legal context as a similar patent infringement case involving SETi in 2019. In that case, a former SETi technical employee relocated to China, established and operated an opto-semiconductor company, and later returned to the United States to found Bolb Inc., which was found to have infringed SETi’s patents. The court issued injunctions against Bolb employees and related parties. In the present Laser case, the infringing products were manufactured by a company established by a former executive of Seoul Viosys—SETi’s long-time OEM manufacturing partner—and were subsequently imported and sold by Laser Components. The court delivered a firm judgment against the misappropriation of the underlying technology.

Rakesh Jain, CEO of SETi, stated, “Birth is not fair, but opportunity must be fair.” He added, “Without opto-semiconductors, the United States could not manufacture automobiles or aircraft, and our homes and streets would fall into darkness. Yet today, everyone talks only about silicon semiconductors and AI, while the national security risks associated with opto-semiconductors are rarely mentioned.”

He further noted, “Some large corporations are using low-cost products that infringe patents. To manufacture products essential to the United States, SETi has secured a 25,000-square-meter site and, together with Seoul Viosys in Korea, has invested billions of dollars over the past 25 years. However, we are currently operating at less than 10% capacity.” He urged, “For the sake of national security, opto-semiconductor patent technologies must be protected, and the government should pay special attention to preventing U.S. patents from being sold to foreign companies.”

About Sensor Electronic Technology, Inc. (SETi)

SETi is a U.S.-based innovation company that developed and commercialized the world’s first Deep UV LED opto-semiconductor technology. Headquartered in Columbia, South Carolina, SETi, the subsidiary of Seoul Semiconductor (KOSDAQ: 046890), has built a strong portfolio of more than 600 foundational patents and continues to develop and manufacture its own EPI technology in-house. SETi generates approximately $10 million in annual revenue across global applications, including medical, industrial, and environmental sectors, and continues to lead technological advancement in the field. For more information, visit: http://www.s-et.com/en/.

About Seoul Viosys

Seoul Viosys possesses the technological capability to produce full-spectrum opto-semiconductor chips from 200nm to 1,400nm, supported by over 6,000 patents. The company manufactures VCSEL (Vertical Cavity Surface Emitting Laser) and laser diodes, and mass-produces the world’s first “WICOP Pixel,” which integrates R, G, and B for displays into a single chip. Founded in 2002, Seoul Viosys currently holds the world’s No. 1 market share in UV LED and, together with its parent company Seoul Semiconductor—which holds 15,000 patents—continues to strengthen its technological leadership in the global market. For more information, visit: www.seoulviosys.com.

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