The lawsuit filed by LED manufacturer ams OSRAM against Nature Fresh Farms — and thereby indirectly against LED lamp supplier Agrolux — could have major consequences for the lighting industry.
A lighting fixture contains various components, such as the housing, cooling system, lenses, driver, and connectors. These are either produced by the manufacturers themselves or sourced from other suppliers. The actual light source — which is the focus of this case — is the LED module. These are often purchased externally. The light source is not only an important part of the lighting fixture but also an expensive one: it can account for 50 to 60 percent of a lamp's total cost.
ams OSRAM is one of the most well-known producers of these light modules. Their assortment of LED components includes various modules with specific wavelengths for horticulture. These components are used by many well-known lighting solution manufacturers. Several solutions in ams OSRAM's LED components are patented.
The lighting industry has been under sustained pressure for several years. While early developments in LED technology focused on achieving maximum efficiency to reduce energy consumption, the market dynamic has gradually shifted toward cost competitiveness — delivering high light output at increasingly lower prices. This shift has led to tightening profit margins for many suppliers. As a result, some companies have begun sourcing LED components from lower-cost suppliers, contributing to a general decline in pricing across the sector. In some cases, prices have dropped to around ten cents per mmol—a level that can be difficult to match depending on the technology and components used.
But this is where the conflict arises: According to ams OSRAM, the Agrolux Wega Plus lamps contain LED components that infringe on their patents. These lamps were installed at Nature Fresh Farms, which is why they are now being sued.
Alexander Hoffmann, Business Line Illumination
Alexander Hoffmann, Business Line Illumination at ams OSRAM, emphasized that the company closely monitors the horticulture market and identified the alleged infringement in connection with the Agrolux Wega Plus fixture. Due to the legal nature of the case, we cannot share specific details about the discovery process. He clarified that the issue is not about mixing components from various brands but centers on specific patented LEDs: "The infringement concerns specific LED components—in particular, hyper-red LEDs in the 660–670nm range—that violate ams OSRAM's intellectual property."
This case, according to Alexander, is not an isolated one. "As a technology leader, ams OSRAM actively monitors market developments and addresses potential IP issues on a case-by-case basis—with the goal of ensuring a level playing field and fostering fair competition. Last year, we highlighted in our market communication that there were signs of potential IP infringements by competitors' LEDs, and we continue to observe products in the market that raise similar concerns."
Consequences
This communication emphasized possible consequences, including fixtures needing to be removed or replaced. If ams OSRAM wins the case, that could be in store for Nature Fresh Farms — which would mean a cost of millions. In that case, they are likely to turn to supplier Agrolux, which is part of the U.S.-based company Hawthorne Gardening Company. Agrolux, in turn, would likely turn to their supplier, and then the question is what will happen there.
Nature Fresh Farms is not the only grower using these lamps. Several North American and European growers have installed the Wega Plus in recent years. In addition, there are other major suppliers who use these or similar LED components in their fixtures.
Alexander, of course, cannot comment on this hypothetical chain of actions.
"Generally, all companies in the value chain are responsible for ensuring that the LED components they use are IP-compliant. As this is a legal matter, I cannot comment on potential future actions. However, if growers are using Agrolux Wega Plus fixtures and would like to better understand how to ensure an IP-compliant supply chain, they are welcome to contact ams OSRAM for guidance", he says.
Steps to take
According to Alexander, growers themselves can take steps to ensure they are not caught in the middle of such disputes. "We encourage growers to engage in open discussions with their fixture suppliers regarding the origin of LED components, as transparency supports informed and IP-compliant purchasing decisions. If the fixtures use LEDs from ams OSRAM, growers can be confident that there are no IP concerns. Additionally, our cobranding programs reflect trusted collaborations with selected partners and provide an additional indication of IP-safe and compliant LED solutions."
Alexander concludes with explaining ams OSRAM maintains a strong patent portfolio and remains committed to enforcing IP rights and fostering fair competition. "Therefore, we will take appropriate actions to protect our IP where necessary. We value strong and transparent partnerships throughout the horticulture value chain and remain committed to supporting innovation and sustainable growth—based on fair practices and mutual trust."
For more information:
ams OSRAM
www.ams-osram.com