First Solar Initiates Legal Action Against JinkoSolar for Infringement of TOPCon Technology Patents

Rhea-AI Summary

First Solar (FSLR) has initiated legal action against JinkoSolar for alleged infringement of its TOPCon (Tunnel Oxide Passivated Contact) technology patents. The lawsuit, filed in the United States District Court for the District of Delaware, specifically concerns US Patent No. 9,130,074, which covers manufacturing methods for TOPCon crystalline silicon photovoltaic solar cells.

First Solar acquired these patents through its 2013 TetraSun acquisition. The company holds TOPCon patents across multiple jurisdictions including the US, Australia, Canada, China, EU, and others, with validities extending beyond 2030. This legal action follows First Solar's July 2024 announcement of infringement investigations against several leading crystalline silicon solar cell manufacturers.

Positive

• Strong international patent portfolio covering key solar markets
• Patents valid beyond 2030, ensuring long-term intellectual property protection
• Proactive defense of intellectual property rights could lead to potential licensing revenue

Negative

• Legal costs associated with patent litigation
• Uncertain outcome of the lawsuit
• Potential for prolonged legal proceedings

Insights

Patent Litigation Specialist

First Solar's patent infringement lawsuit against JinkoSolar represents a strategic offensive that could reshape competitive dynamics in the solar manufacturing industry. This legal action targets JinkoSolar's use of Tunnel Oxide Passivated Contact (TOPCon) technology - a high-efficiency cell architecture that has become increasingly central to crystalline silicon manufacturers' product roadmaps.

The lawsuit's timing is particularly significant. First Solar, primarily known for its thin-film technology, is leveraging patents acquired through its 2013 TetraSun acquisition to potentially extract value from a technology it doesn't directly commercialize. This creates an unusual competitive dynamic where First Solar could benefit regardless of outcome: either through licensing revenue from TOPCon manufacturers or by creating market disruption for its crystalline silicon competitors.

For investors, several potential scenarios warrant consideration:

• If First Solar prevails, they could secure damages and ongoing royalties from JinkoSolar's US sales, potentially establishing a precedent for licensing agreements with other manufacturers
• More aggressively, First Solar could seek injunctions preventing the import of infringing products, significantly disrupting JinkoSolar's access to the US market
• The litigation creates uncertainty for JinkoSolar's US business strategy and could impact their market valuation if investors perceive significant risk

This case doesn't exist in isolation - it intersects with broader US-China trade tensions in the solar sector. Chinese manufacturers already face challenges including the Uyghur Forced Labor Prevention Act restrictions and various tariffs. This patent enforcement creates another potential barrier to US market access.

The lawsuit's selective targeting of JinkoSolar rather than simultaneously pursuing all potential infringers suggests a deliberate strategy - possibly to establish favorable precedent before addressing other manufacturers. First Solar's statement that "interactions with JinkoSolar have been unproductive" implies failed licensing negotiations preceded litigation.

For the broader solar industry, this case introduces uncertainty around TOPCon manufacturing. The technology has become mainstream as manufacturers transition from PERC to higher-efficiency architectures. If First Solar's patents are upheld as valid and infringed, it could force significant adjustments throughout the crystalline silicon supply chain, potentially benefiting First Solar's thin-film technology in the competitive landscape.

TEMPE, Ariz.--(BUSINESS WIRE)-- First Solar, Inc. (Nasdaq: FSLR) (“First Solar”) today announced the filing of a lawsuit against Shanghai-headquartered JinkoSolar and its related entities alleging infringement of First Solar’s US Patent No. 9,130,074 (the “‘074 Patent”). The ‘074 Patent covers methods of manufacturing Tunnel Oxide Passivated Contact (“TOPCon”) crystalline silicon (“c-Si”) photovoltaic (PV) solar cells. The lawsuit was filed in the United States District Court for the District of Delaware.

First Solar obtained the US TOPCon patents and related international counterparts through its 2013 acquisition of TetraSun, Inc. The patents include issued patents in the United States, Australia, Canada, China, the European Union, Hong Kong, Japan, Mexico, Malaysia, Singapore, South Korea, the United Arab Emirates, and Vietnam with validities extending to 2030 and beyond. The portfolio also includes pending patent applications in the European Union, Japan, Hong Kong, United Arab Emirates, and Vietnam. In July 2024, First Solar announced its ownership of the TOPCon technology patent portfolio and the launch of infringement investigations against several leading crystalline silicon solar cell manufacturers.

“We’ve been clear that we will actively defend our intellectual property rights in the US and internationally. Unfortunately, our interaction with JinkoSolar has been unproductive and left us with no choice but to enforce our patent rights through legal action,” said Jason Dymbort, Executive Vice President, General Counsel and Secretary, First Solar. “Given the responses we received from other solar cell manufacturers in connection with our infringement investigations, we believe we have a strong TOPCon technology patent portfolio. We expect that our lawsuit against JinkoSolar will reiterate the need for TOPCon solar cell manufacturers to operate within the well-defined framework of intellectual property law.”

About First Solar, Inc.

First Solar, Inc. is America's leading PV solar technology and manufacturing company. The only US-headquartered company among the world's largest solar manufacturers, First Solar is focused on competitively and reliably enabling power generation needs with its advanced, uniquely American thin film PV technology. Developed at research and development (R&D) labs in California and Ohio, the Company's technology represents the next generation of solar power generation, providing a competitive, high-performance, and responsibly produced alternative to conventional crystalline silicon PV modules. For more information, please visit www.firstsolar.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains various “forward-looking statements” which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements concerning: (i) the validities extending to 2030 of patents including issued patents in the United States, Australia, Canada, China, the European Union, Hong Kong, Japan, Mexico, Malaysia, Singapore, South Korea, the United Arab Emirates, and Vietnam; (ii) that we will actively defend our intellectual property rights, (iii) our future plans and areas of focus in relation to patent rights, (iv) the perceived value of patent rights, (v) our positioning to enforce patent rights, and (vi) our investigation of potential infringers. 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 First Solar’s current expectations and First Solar’s 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. First Solar undertakes 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 First Solar’s 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/20250225563316/en/

Media

Reuven Proença

First Solar Media

media@firstsolar.com

Investors

Byron Jeffers

First Solar Investor Relations

investor@firstsolar.com

Source: First Solar, Inc.

FAQ

What patents is First Solar (FSLR) claiming JinkoSolar infringed?

First Solar claims JinkoSolar infringed US Patent No. 9,130,074, covering TOPCon crystalline silicon solar cell manufacturing methods.

When did First Solar acquire the TOPCon technology patents?

First Solar acquired the TOPCon patents through its acquisition of TetraSun, Inc. in 2013.

How long are First Solar's TOPCon patents valid?

The patents' validity extends beyond 2030 across multiple international jurisdictions.

Which countries are covered by First Solar's TOPCon patent portfolio?

The patents cover US, Australia, Canada, China, EU, Hong Kong, Japan, Mexico, Malaysia, Singapore, South Korea, UAE, and Vietnam.