Back in June 2011 Universal Display announced that some of its patents have been invalidated in Japan by the Japanese Patent Office (JPO). The company gave an update today regarding two patents. On one patent (#3992929), the Japanese High Court acknowledged the validity of certain claimed inventions in the patent, but confirmed the JPO's conclusion to invalidate the broadest claims. UDC says it intends to appeal to the Japanese Supreme court. UDC's Shares are dropping around 10% now.
Regarding the second patent (#4511024), the JPO issued a decision upholding the validity of certain claimed inventions but invalidating the broadest claims. UDC believes this decision was erroneous and they intend to appeal to the Japanese High Court.
Just a few days ago, in a conference, UDC said that those Japanese decisions aren't of high importance, for three reasons. First, the basic phosphorescent patent is still valid until 2018 in Japan. Second, the Japanese system doesn't usually allow broad patent claims. Thirdly, this only effects products produced and sold in Japan
Disclosure: the author of this post holds shares in universal display