(Yicai Global) May 12 -- Longi Green Energy Technology, the world’s biggest supplier of solar wafers and modules, has reached a settlement with South Korean competitor Hanwha Solutions over patent disputes.

The pair signed a patent cross-licensing agreement on May 11, stipulating that both have the rights to use the relevant patents worldwide, Xi’an-based Longi said late yesterday. They also agreed to drop all litigation and patent invalidation procedures between the two and their units, it added.

Since March 2019, Hanwha has filed lawsuits with the US International Trade Commission and courts in the United States, Australia, Germany, France, and the Netherlands on the grounds that some products sold by Longi and its units allegedly infringed its patent rights. Each side won and lost some battles.

The settlement will have no material impact on Longi’s operations, but will help the company offer more diversified products and services to its customers around the world, the firm noted.

Founded in 2015 by the merger of Hanwha Solar One and Hanwha Q Cells, Seoul-based Hanwha is a unit of Hanwha Group, one of South Korea’s top 10 consortiums and once the world’s largest maker of solar cells.

Longi’s shares [SHA: 601012] fell 2.8 percent to close at CNY32.80 (USD4.72) each today, while the wider Shanghai market fell 1.1 percent. Despite strong earnings results, Longi’s stock price has halved from a 52-week high of CNY68 last June, when concerns about overcapacity began to arise.

Editor: Futura Costaglione