First Solar Announces Ownership of TOPCon Technology Patents, Undertakes Infringement Investigation

Rhea-AI Summary

First Solar (NASDAQ: FSLR) has announced its ownership of patents related to Tunnel Oxide Passivated Contact (TOPCon) crystalline-silicon photovoltaic solar cell manufacturing. These patents, acquired through the 2013 purchase of TetraSun, are valid in multiple countries including the United States, Canada, China, and Japan, with validities extending to 2030. First Solar is initiating an investigation into potential patent infringement by several crystalline silicon solar manufacturers.

The company is evaluating options to protect its intellectual property, including asserting patent rights against potential infringers. First Solar's Executive VP and General Counsel, Jason Dymbort, emphasized the company's commitment to leveraging these patents in developing next-generation PV technologies across multiple semiconductor platforms.

Positive

• Ownership of valuable TOPCon technology patents valid until 2030
• Patents cover multiple key markets including US, Canada, China, and Japan
• Potential for additional revenue through patent enforcement or licensing

Negative

• Potential legal costs associated with patent infringement investigations and enforcement
• Risk of patent challenges or invalidation attempts by competitors

Legal Expert

First Solar's move to assert its patent rights via legal actions against potential infringers highlights a strategic effort to protect its intellectual property. Securing patents across multiple jurisdictions, including the U.S., Canada, China and several others, establishes a robust legal framework for enforcement. The validity of these patents extending to 2030 ensures long-term protection and potential revenue streams through licensing or litigation settlements.

From a legal standpoint, the fact that First Solar is initiating an investigation into possible infringements signals not just a defensive maneuver, but potentially a proactive strategy. This could create a ripple effect in the industry, potentially dissuading competitors from leveraging similar technologies without proper licensing. Investors should watch for updates on the investigation as any favorable enforcement actions could lead to additional revenue through licensing fees or damage awards.

Furthermore, the company’s stance on enforcing its rights underscores its commitment to innovation and intellectual property protection. This can also enhance its negotiating power in future technology partnerships or acquisitions.

Tech Expert

The acquisition of TOPCon technology patents represents a significant asset for First Solar. The TOPCon (Tunnel Oxide Passivated Contact) technology is noted for its ability to improve the efficiency and performance of crystalline silicon (c-Si) solar cells. This aligns well with market demands for higher efficiency solar panels. The proprietary cell architecture and manufacturing processes developed by TetraSun could provide First Solar with a competitive edge in the solar industry.

TOPCon technology represents an advanced method to reduce electron recombination at the cell’s surface, which enhances efficiency. For a company that primarily focuses on thin-film PVs, diversifying into c-Si with advanced technologies like TOPCon could open new market opportunities and mitigate risks associated with reliance on a single technology platform.

This diversification strategy can lead to more resilient business operations and could position First Solar as a leader in multiple solar technology segments. Investors should consider this move as a potential for long-term growth, as adopting and securing cutting-edge technologies is important for maintaining competitive advantage in the rapidly evolving renewable energy market.

Financial Analyst

First Solar's announcement of ownership and protection of TOPCon technology patents could have notable financial implications. The potential for revenue through licensing agreements or lawsuits against infringers can represent a new income stream. This is particularly important as the company continues to invest in R&D for the next generation of PV technologies.

Financially, securing and leveraging such a broad patent portfolio can enhance the company's market position and potentially its stock value. Investors should note that any successful litigation or licensing deals can lead to substantial financial gains. Additionally, the emphasis on protecting intellectual property (IP) can indicate management’s commitment to maintaining and enhancing shareholder value.

However, it's also important for investors to consider the costs associated with legal actions and patent enforcement. These can be significant and may impact short-term financial performance. Therefore, while the long-term prospects look favorable, short-term financial volatility could be an aspect to monitor. Overall, the move can be seen as a strategic one aimed at safeguarding and potentially monetizing key technologies essential for future growth.

• Patents secured through 2013 acquisition of TetraSun include issued patents in the United States, Canada, Mexico, China, Malaysia, Vietnam, Japan, and Australia, among other jurisdictions, and pending patent applications in the European Union and Japan
• First Solar evaluating options including asserting patent rights against potential infringers

TEMPE, Ariz.--(BUSINESS WIRE)-- First Solar, Inc. (“First Solar”) (NASDAQ: FSLR) today announced its ownership of patents related to the manufacturing of Tunnel Oxide Passivated Contact (“TOPCon”) crystalline-silicon (“c-Si”) photovoltaic (“PV”) solar cells.

First Solar secured the U.S. patent and related international counterparts through its acquisition of TetraSun, Inc. (“TetraSun”) and has initiated an investigation of several c-Si solar manufacturers for potential infringement of its patents. The patents include issued patents in the United States, Canada, Mexico, China, Malaysia, Vietnam, Japan, and Australia, among other jurisdictions, with validities extending to 2030. It also includes pending patent applications in the European Union and Japan. First Solar firmly believes in the value and strength of the patents and plans to conduct a thorough investigation of potentially infringing products.

First Solar acquired TetraSun and its intellectual property portfolio in 2013. Prior to its acquisition, the California-based startup had pioneered proprietary cell architecture and manufacturing processes for large-format crystalline silicon wafers.

“These patents are First Solar’s intellectual property, which we continue to leverage as part of ongoing efforts to develop the next generation of PV technologies,” said Jason Dymbort, Executive Vice President, General Counsel and Secretary of First Solar. “While First Solar is a world leader in the development and commercialization of advanced thin film photovoltaics, our R&D and intellectual property portfolio spans several semiconductor platforms, including crystalline silicon, as we pursue multiple pathways towards our goal of developing the next transformative, disruptive solar technology.”

Dymbort added, “We are investigating several leading crystalline silicon solar manufacturers for potential infringement of our patents. If infringement is discovered, we intend to challenge the ability of potential infringers to legally manufacture, assemble, and sell infringing TOPCon technology by pursuing enforcement, licensing, and/or other measures to safeguard our rights.”

About First Solar, Inc.

First Solar is a leading American solar technology company and global provider of responsibly produced eco-efficient solar modules advancing the fight against climate change. Developed at R&D labs in California and Ohio, the company’s advanced thin film photovoltaic (PV) modules represent the next generation of solar technologies, providing a competitive, high-performance, lower-carbon alternative to conventional crystalline silicon PV panels. From raw material sourcing and manufacturing through end-of-life module recycling, First Solar’s approach to technology embodies sustainability and a responsibility towards people and the planet. For more information, please visit www.firstsolar.com.

Cautionary Statement Regarding Forward-Looking Statements

This release contains forward-looking statements which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical fact, are forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning: our future plans and areas of focus in relation to patent rights, the perceived value of patent rights, our positioning to enforce patent rights, our investigation of potential infringers, our intention to challenge the ability of infringers to legally manufacture, assemble, and sell infringing TOPCon technology where our patent rights exist; and our intention to consider a range of options, including enforcement, licensing, and other potential means to safeguard our rights. These forward-looking statements are often characterized by the use of words such as “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “seek,” “believe,” “forecast,” “foresee,” “likely,” “may,” “should,” “goal,” “target,” “might,” “will,” “could,” “predict,” “continue” and the negative or plural of these words and other comparable terminology. Forward-looking statements are only predictions based on our current expectations and projections about future events and therefore speak only as of the date of this release. You should not place undue reliance on these forward-looking statements. We undertake no obligation to update any of these forward-looking statements for any reason, whether as a result of new information, future developments or otherwise. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by these statements. These factors include, but are not limited to, the results of our investigation of potential infringers, the costs and other impacts arising from any subsequent litigation, the results of which are unpredictable; the validity and scope of claims relating to the patents; the potential for companies to develop and patent technology designed to exclude our patented technology; and the matters discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of First Solar’s most recent Annual Report on Form 10-K, as supplemented by First Solar’s other filings with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240719204883/en/

Media

Reuven Proença

First Solar Media

media@firstsolar.com

Investors

Richard Romero

First Solar Investor Relations

investor@firstsolar.com

Source: First Solar, Inc.

FAQ

What patents does First Solar (FSLR) own related to TOPCon technology?

First Solar owns patents related to the manufacturing of Tunnel Oxide Passivated Contact (TOPCon) crystalline-silicon photovoltaic solar cells, acquired through its 2013 purchase of TetraSun. These patents are valid in multiple countries including the US, Canada, China, and Japan, with validities extending to 2030.

Is First Solar (FSLR) investigating potential patent infringement?

Yes, First Solar has initiated an investigation into several crystalline silicon solar manufacturers for potential infringement of its TOPCon technology patents. The company is evaluating options including asserting patent rights against potential infringers.

How long are First Solar's (FSLR) TOPCon patents valid?

First Solar's TOPCon technology patents have validities extending to 2030, providing the company with long-term intellectual property protection in this area.

What actions might First Solar (FSLR) take to protect its TOPCon patents?

First Solar is considering various options to protect its TOPCon patents, including pursuing enforcement, licensing, and other measures to safeguard its rights against potential infringers.