(Yicai) Feb. 9 -- Aiko Solar Energy, a leading Chinese maker of solar cells, has agreed to pay CNY1.65 billion (USD238 million) to resolve a more than two-year patent dispute with Singapore-based Maxeon Solar Technologies.

The payment will give Shanghai-based Aiko the patent license for all of Maxeon’s existing solar back contact cells and components and those produced in the next five years outside of the United States, not involving reverse licensing, the two firms announced late on Feb. 6.

Aiko will pay the fee in installments over the next five years, with CNY250 million (USD36.08 million) due in the first year. Maxeon is majority owned by Chinese silicon wafer giant TCL Zhonghuan.

Aiko’s shares [SHA: 600732] surged by their 10 percent daily trading limit to close at CNY15.04 (USD2.17) each in Shanghai today, while TCL Zhonghuan [SHE: 002129] also climbed by the same to CNY11.68 in Shenzhen.

The dispute began in November 2023, when Maxeon filed lawsuits over patent infringement in European jurisdictions such as Germany, the Netherlands, and the Unified Patent Court in Luxembourg, aiming to restrict the sales of Aiko-produced solar cells in Europe.

BC battery technology is one of the mainstream production routes for high-efficiency solar cells, and Maxeon holds key basic patents in the field. The dispute between the two firms lay in the fact that even though Aiko’s All Back Contact technology features independent innovation, it is difficult to circumvent Maxeon's fundamental BC patents.

The pair will withdraw or terminate all legal proceedings that are underway or pending between them related to the licensed patents and licensed products, they noted.

Tianjin-based TCL Zhonghuan said the deal will allow it to collaborate with its industry-chain partners to jointly build a BC battery technology ecosystem, and strengthen its market position and competitive advantage in the BC battery component sector.

Aiko said the move will help it and Maxeon build a more stable and comprehensive patent protection barrier for their BC battery technology, avoid long-term litigation costs, and facilitate the smoother sales of Aiko’s BC products in global markets.

Editor: Tom Litting