Japan Display Inc. (JDI) announced yesterday that it has signed a cross-licensing agreement with China Star Optoelectronics Technology (CSOT), a subsidiary of TCL Technology Group, to mutually use their intellectual property rights. JDI has a technological edge in liquid crystal display (LCD) panels in terms of viewing angle and other aspects.

JDI said that it will strengthen its intellectual property licensing business in the future, and that this cooperation is also part of its measures to improve profitability. CSOT is outstanding in the large LCD panel business, with a market share of several percentage points in the LCD industry. JDI will receive licensing revenue from CSOT.

In addition to reaching an agreement with CSOT, JDI has also reached an agreement with Taiwan’s LCD panel maker Innolux on intellectual property licensing. JDI said that it is reviewing and evaluating the impact of the relevant licensing agreements on its earnings for fiscal year 2024.

According to previous media reports, JDI, a supplier of Apple, expects a consolidated net loss of 47.8 billion yen (about 2.476 billion yuan) for fiscal year 2023, which means that the company will suffer losses for 10 consecutive years.