- Intellectual Property Strategy and Objectives
LITEON actively fosters innovation and independent research and development. To align closely with its business goals and focus on the long-term growth of its core businesses, the company continues to strengthen its patent portfolio in key future technologies. This includes not only increasing the number of patent applications in core technical areas, but also proactively pursuing green patents in response to ESG governance evaluation transmformation trends—demonstrating the company’s commitment to environmental sustainablility.
- Intellectual Property Management System
LITEON places great importance on intellectual property (IP) rights and has established robust processes for acquiring, maintaining, and utilizing patents, trademarks, copyrights, and trade secrets. These efforts enhance the company’s competitiveness and safeguard the interests of both LITEON and its shareholders.
Patent Management
Through a comprehensive proposal, review, and reward system, LITEON encourages employees to actively transform their R&D achievements into protected intellectual property—such as patent applications, trade secrets, or academic publications. This approach drives innovation and product development while strengthening the company’s overall patent portfolio to enhance its technological competitiveness.
Trademark Management
LITEON has clearly defined procedures for trademark application, evaluation, acquisition, and maintenance. The company promotes proper trademark usage to ensure effective control and protection of intangible assets, while continuously reinforcing its brand image. Ongoing trademark monitoring helps prevent unauthorized registrations and supports strategic trademark deployment aligned with business goals. In response to ESG initiatives and green transformation, LITEON is also committed to develop a green trademark strategy, reflecting its dedication to sustainable operations.
Trade Secret Management
LITEON protects and manages confidential information, including trade secrets, through an integrated system combining information security and IP management. Daily operations include classification and tiered control of documents, along with ongoing employee training to raise awareness of confidentiality and reduce the risk of information leakage. These measures ensure the security and integrity of R&D outcomes, further advancing the company’s maturity and resilience in IP governance.
To safeguard LITEON’s intellectual property, all employees are required to sign employment contracts and related documents upon onboarding. These agreements specify that IP created in the course of employment belongs to LITEON, and employees are obligated to maintain confidentiality and uphold related responsibilities both during and after their tenure.
Additionally, LITEON has implemented internal audit procedures to ensure that all IP-related activities—acquisition, maintenance, and utilization—are conducted in accordance with company policies.
- Implementation and Achievements
LITEON reported its intellectual property-related matters to the Board of Directors at the 13th meeting of the 114th fiscal year (October 29, 2025).
The company’s recent implementation efforts and achievements in intellectual property are as follows:
Patents
As of Q3 2025, LITEON holds over 3,000 multinational patents. The number of patent applications filed in 2025 has increased by more than 60% compared to the same period in 2024. By continuously expanding its global patent portfolio, LITEON has built a strong patent defense system that not only protects its technological innovations but also enhances market competitiveness and safeguards customer interests.
LITEON has also made long-term investments in green technology R&D and patent deployment, covering energy-saving technologies such as low-power consumption power supply circuits, EV charging stations, energy consumption measurement, energy storage, and intelligent lighting. According to statistics from the Taiwan Intellectual Property Office, LITEON has been granted approximately 550 green patents, with steady growth year over year.
Trademarks
LITEON currently owns over 200 active trademarks registered in more than 40 countries, spanning 10 major categories. To strengthen brand recognition and image, trademarks are prominently displayed on products, packaging, and commercial documents such as product catalogs. Registered trademarks are also consistently used in domestic and international business activities and exhibitions.
Through strategic trademark deployment and promotion, LITEON aims to prevent unfair competition, reinforce brand identity, and enhance the visibility of its products and services—ultimately increasing overall business value. For example, the representative trademark “LITEON” has been deployed in areas defined by the Taiwan Intellectual Property Office’s nine green trademark categories, including transportation (e.g., electric bicycles) and energy efficiency (e.g., solar panels for power conversion), demonstrating LITEON’s commitment to environmental sustainability.
Trade Secrets
To ensure proper protection of its information assets, LITEON has established classification, grading, and labeling standards for confidential data, along with appropriate security measures to prevent theft, tampering, damage, loss, or leakage. Access to confidential information is strictly controlled.
In response to the trend of digitizing paper documents and transmitting data via networks, LITEON follows the ISO 27001:2022 Information Security Management System standard and has implemented an Information Security Policy. Measures include regular system vulnerability scans, third-party cybersecurity assessments, threat detection, security monitoring systems, and the adoption of Microsoft Azure Information Protection (AIP) to prevent data breaches.
Cloud-based tools such as Microsoft Office 365 are also used to encrypt documents and enforce identity verification and access control. Physical security measures apply to both internal employees and external personnel (including customers, consultants, partners, and vendors), all of whom are subject to this policy.
Digitalization of Management Processes
Since 2020, LITEON has gradually introduced automated and cloud-based management systems for intellectual property, including engineering notebooks, patents, and trademarks. This digital transformation has improved operational efficiency and data security while significantly reducing paper usage and resource waste—helping to prevent deforestation and lower carbon emissions. These efforts reflect LITEON’s tangible commitment to environmental sustainability and intelligent governance.
- Primary Uses of Intellectual Property and Its Contribution to Business Operations
LITEON actively leverages and manages its intellectual property assets through various means, including technology licensing, cross-licensing, IP acquisition or sale, and enforcement actions against infringement and counterfeiting. These efforts help protect the company’s innovations and maintain fair market practices.
In addition, strategic patent deployment plays a key role in strengthening customer relationships by enhancing trust in LITEON’s technological capabilities and deepening collaboration. This approach not only safeguards intellectual assets but also contributes directly to business growth and long-term competitiveness.
- Intellectual Property Risks and Mitigation Measures
LITEON proactively addresses and manages intellectual property disputes to protect its markets, products, technologies, and customers. Key strategies include strengthening patent portfolios for core technologies and strategically acquiring patents to support future product development.
In handling disputes, LITEON conducts comprehensive analyses from technical, legal, and industry perspectives to formulate effective response strategies. These may involve creating technological barriers for competitors or avoiding infringement of third-party patents to effectively control related risks.
LITEON also conducts multiple training sessions annually to emphasize the importance of intellectual property and to improve employee understanding of IP rights and related risk management mechanisms. These courses cover topics such as optimal timing for patent applications, building technological advantages, managing confidential technical information, and monitoring market and technology trends. The company also provides clear guidelines to help employees respond swiftly and appropriately to potential IP risks, minimizing operational impact.
To further mitigate risks, LITEON identifies IP-related opportunities and threats linked to business operations and implements corresponding countermeasures. These include policy frameworks, employee training, confidentiality management, asset audits, and mechanisms for reporting and rewarding infringement cases. These efforts ensure the effective generation and protection of intellectual property while maintaining robust risk control.
