Sharp recently announced that the company and Nichia, a Japan-based LED (Light Emitting Diodes) manufacturer, have entered into an agreement, whereby both parties agreed to cross license 3,500 patents, of which Sharp owns approximately 1,400 patents and Nichia 2,100 patents, Nikkei reported. The agreement covers the patents for LED and laser diodes. Sharp has been producing LED equipment since September 2008.

Pursuant to the agreement, Sharp will be granted to access to Nichia's patents related to the production of blue and white LEDs, while Nichia will be able to generate more licensing income. Aside from Nichia, Sharp already has signed similar agreements with other companies, including Sony.