Cree cuts deal with rival

Two rivals in the rapidly expanding LED lighting sector -- Durham-based Cree and electronics giant Philips -- announced this morning that they have agreed to an intellectual property deal that they say will accelerate the market's growth.

The two companies have agreed to cross-license a broad range of patents related to their LED businesses.

"This agreement demonstrates the breadth and depth of both companies' intellectual property, as well as the fundamental nature and value these patents bring to the market," Cree CEO Chuck Swoboda said in a prepared statement. "It also signals both companies' commitment to growing the LED market while respecting the value and importance of international intellectual property laws."

Both Cree and Netherlands-based Philips, the corporate parent of Philips Lumileds Lighting, manufacture LEDs used for lighting as well as LED light fixtures.

"Philips and Cree have significantly invested in innovation in LED lighting solutions," said Rudy Provoost, CEO of Philips Ligthing. "The wide-ranging intellectual property portfolios of the respective companies reflect the outcome of this effort."

Cree employs about 1,800 workers at its headquarters in Durham. What the company calls "the LED lighting revolution" boosted the company's revenue 78 percent -- to $234.1 million -- in the latest quarter.