The two largest European lighting manufacturers, Royal Philips Electronics and Osram, have concluded a patent license agreement for LED-based technology used in luminaires, according to a report in LEDs Magazine.

Osram says that the agreement "will give the market for LED-based lighting a further boost." Philips described the agreement as "a next step in making the basic Philips LED control IP broadly available to accelerate the development of the market."

In June une 2008, Philips announced a patent licensing program for LED-based luminaires. Customers of Philips that purchase all key LED luminaire components from Philips already enjoy the advantage of not having to pay royalties under this licensing program.

Now, Osram has taken a license from Philips to obtain the same effect for Osram customers. In other words, LED luminaire manufacturers can now use key components from Osram without having to pay license fees to Philips.

Osram says that these "special rights" relate not only to patents held by Philips but also to patents held by Color Kinetics and TIR Systems, which were acquired by Philips last year.

According to Philips, this new arrangement also benefits Philips customers, because it includes royalty-free access to Osram LED system patents when purchasing all key components from Philips.