Canadian Solar Settles Patent Litigation with Solaria

Rhea-AI Summary

Canadian Solar Inc. (NASDAQ: CSIQ) announced a settlement with Solaria to resolve patent litigation after a favorable claim construction ruling by a U.S. court. Solaria will terminate its Section 337 investigation and dismiss infringement claims against Canadian Solar. The settlement requires no payment or admission of liability from either party. Canadian Solar had already discontinued the disputed shingled solar module technology. The company's latest all-black modules promise improved efficiency and power output, reinforcing its commitment to innovation in renewable energy.

Positive

• Settlement with Solaria clears legal hurdles, allowing focus on core business.
• Canadian Solar can enhance product offerings with new all-black modules showcasing higher efficiency.
• No financial liability or payment required under the settlement enhances cash position.

Negative

• None.

No Admission of Liability or Wrongdoing, Nor Payment

GUELPH, ON., June 8, 2022 /PRNewswire/ -- Canadian Solar Inc. (NASDAQ: CSIQ) and Canadian Solar (USA) Inc. (jointly "Canadian Solar") announced today that they have reached a settlement agreement with Solaria resolving their pending patent litigation, following the claim construction order by the U.S. District Court for the Northern District of California adopting the core argument advanced by Canadian Solar, as well as the decision by the U.S. International Trade Commission to grant Canadian Solar's request to review the initial determination of its Administrative Law Judge. Pursuant to the terms of the settlement, Solaria agreed to terminate the Section 337 investigation it initiated at the U.S. International Trade Commission and to dismiss with prejudice the patent infringement claims it asserted against Canadian Solar in the Northern District of California. Canadian Solar agreed to withdraw the inter partes review it filed with the U.S. Patent and Trademark Office challenging a Solaria asserted patent. Neither party admits any liability or wrongdoing, and no payment is required under the settlement.   

"We are pleased to resolve our dispute with Solaria, and to continue our focus on providing our customers with high quality solar products and exceptional service," said Dr. Shawn Qu, Chairman and CEO of Canadian Solar Inc. No changes to Canadian Solar's product offerings will result from the settlement - Canadian Solar had already discontinued the shingled solar module technology at issue in the litigation several months ago. "Our newest all black modules can achieve significantly higher power output and module efficiency, and this will give our customers even better performance than the previous shingled cell technology they have replaced," said Dr. Qu. Canadian Solar is committed to continuing innovation and to providing a cost-effective source of renewable energy in all the markets it serves around the world.

About Canadian Solar Inc.

Canadian Solar was founded in 2001 in Canada and is one of the world's largest solar technology and renewable energy companies. It is a leading manufacturer of solar photovoltaic modules, provider of solar energy and battery storage solutions, and developer of utility-scale solar power and battery storage projects with a geographically diversified pipeline in various stages of development. Over the past 20 years, Canadian Solar has successfully delivered over 71 GW of premium-quality, solar photovoltaic modules to customers across the world. Likewise, since entering the project development business in 2010, Canadian Solar has developed, built and connected over 6.6 GWp in over 20 countries across the world. Currently, the Company has around 800 MWp of solar projects in operation, 5.3 GWp of projects under construction or in backlog (late-stage), and an additional 18.5 GWp of projects in pipeline (mid- to early- stage). Canadian Solar is one of the most bankable companies in the solar and renewable energy industry, having been publicly listed on the NASDAQ since 2006. For additional information about the Company, follow Canadian Solar on LinkedIn or visit www.canadiansolar.com.

Safe Harbor/Forward-Looking Statements

Certain statements in this press release are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. These statements are made under the "Safe Harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as "believes," "expects," "anticipates," "intends," "estimates," the negative of these terms, or other comparable terminology. Factors that could cause actual results to differ include general business, regulatory and economic conditions and the state of the solar and battery storage market and industry; geopolitical tensions and conflicts, including impasses, sanctions and export controls; volatility, uncertainty, delays and disruptions related to the COVID-19 pandemic; supply chain disruptions; governmental support for the deployment of solar power; future available supplies of high-purity silicon; demand for end-use products by consumers and inventory levels of such products in the supply chain; changes in demand from significant customers; changes in demand from major markets such as Japan, the U.S., China, Brazil and India; changes in effective tax rates; changes in customer order patterns; changes in product mix; changes in corporate responsibility, especially environmental, social and governance ("ESG") requirements; capacity utilization; level of competition; pricing pressure and declines in or failure to timely adjust average selling prices; delays in new product introduction; delays in utility-scale project approval process; delays in utility-scale project construction; delays in the completion of project sales; continued success in technological innovations and delivery of products with the features that customers demand; shortage in supply of materials or capacity requirements; availability of financing; exchange and inflation rate fluctuations; uncertainties related to the CSI Solar carve-out listing; litigation and other risks as described in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 20-F filed on April 28, 2022. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. Investors should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and Canadian Solar undertakes no duty to update such information, except as required under applicable law.

Canadian Solar Inc. Investor Relations Contacts

Isabel Zhang
Investor Relations
Canadian Solar Inc.
investor@canadiansolar.com

David Pasquale
Global IR Partners
Tel: +1-914-337-8801
csiq@globalirpartners.com

View original content:https://www.prnewswire.com/news-releases/canadian-solar-settles-patent-litigation-with-solaria-301563800.html

SOURCE Canadian Solar Inc.

FAQ

What was the outcome of the Canadian Solar and Solaria patent litigation?

Canadian Solar reached a settlement with Solaria, terminating the pending patent litigation without any admission of liability or payment required.

Did Canadian Solar agree to any payments in the Solaria settlement?

No, Canadian Solar did not agree to any payments as part of the settlement agreement.

What technologies were involved in the dispute between Canadian Solar and Solaria?

The dispute involved a shingled solar module technology, which Canadian Solar had already discontinued.

How will the settlement affect Canadian Solar's product offerings?

The settlement will not lead to changes in Canadian Solar's product offerings, as they have replaced the disputed technology with new all-black modules.

What is the significance of the settlement for Canadian Solar's future?

The settlement allows Canadian Solar to focus on innovation and improving its solar product performance without legal distractions.