The lawsuit began in January 2006 when the Japanese chemical industry filed a lawsuit in the Federal District Court for the Northern District of California on the grounds that its white light-emitting diode (LED)-related creative rights were infringed by Seoul Semiconductor. Based on the ruling of the jury in the US lawsuit, Nichia Chemical Industry sued Seoul Semiconductor in South Korea on the grounds that "Seoul Semiconductor spread false facts to the media and damaged the reputation of Nichia's chemical industry."
Nichia Chemical Industry said that in the US lawsuit, the jury made a ruling in November 2007 that Seoul Semiconductor deliberately infringed on the four US creative rights of Nichia Chemical Industry. The court also accepted it in February 2008. The verdict of the jury. However, "Seoul Semiconductor fabricated the facts on the company's Web site, saying that 'the court found that it did not constitute infringement, Seoul Semiconductor won the US lawsuit' and distributed the contents of these contents to the media" (Nichia Chemical Industry) ).

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