(Yicai) Sept. 22 -- Shares of Longi Green Energy Technology and Jinko Solar fell despite the Chinese solar panel makers agreeing to end all of their patent litigations globally and saying they intend to shift focus to commercializing advanced technologies and potentially deeper cooperation.

Longi [SHA: 601012] closed 1.8 percent lower at CNY16.60 (USD2.33) per share in Shanghai today, while Jinko [SHA: 688223] lost 3.2 percent to end at CNY5.18 (73 US cents).

The pair will end all patent litigation proceedings worldwide and will reach a commercial arrangement on the cross-licensing of some core patents they hold, the two companies said in separate statements late on Sept. 19. They did not disclose any further details about this.

Signs of a possible settlement had been visible. Longi's founder Li Zhenguo said in an interview with Yicai and other media outlets earlier this year that he was worried about “patent fights” among the photovoltaic industry’s leading firms.

China’s solar boom over the past 20 years is the result of the joint efforts of the entire industry, Li noted, adding that each company has its own unique patent achievements. Weaponizing patents amid current industry headwinds would only exacerbate its disorder, he pointed out.

Patent litigations between solar companies have surged since the start of last year. The patent war in China's PV sector has been intensifying, with infringements becoming a serious issue, industry insiders told Yicai earlier this year.

Xi’an-based Longi's solar monocrystalline silicon wafer and module shipments have long ranked among the top worldwide, while Jinko, headquartered in Shanghai, has been the leading global shipper of solar panels for the past six years.

Jinko has taken the lead in patents related to tunnel oxide passivated contact solar cell technology, while Longi has the most patents for back contact solar cell production technology. The firms have sued one another several times, mostly over TOPCon tech patents.

Jinko has filed six patent lawsuits against Longi in countries such as China, Japan, and Australia since last December, mainly about core technologies, such as TOPCon battery tech and component design and manufacturing.

Longi filed a patent infringement lawsuit against Jinko with the Intermediate People's Court of Jinan in February and another one against Jinko and its subsidiary with the United States District Court for the Eastern District of Texas in March.

Editors: Tang Shihua, Futura Costaglione