Initially Sony tried to develop a semiconductor laser using materials based on zinc selenide, and in 1996 we succeeded in maintaining continuous oscillation for 100 hours. However, Sony changed its development strategy after Nichia Corporation succeeded in developing a gallium nitride semiconductor laser with a shorter wavelength. It was a difficult decision to abandon development of the materials that we had previously been researching. However, we wanted Sony to maintain its leading role in the advancement of optical disc technology, and we saw this as the best decision in terms of ensuring that Sony would be the first to develop next-generation products based on BD technology.
Yet at this stage, we had simply selected the material that we would use. There were still many challenges to overcome before we could turn this into a semiconductor laser that could be used in commercial products. The first of these was the solution of problems surrounding Nichia Corporation's patents relating to gallium nitride. In the second half of the 1990s, there was a patent lawsuit between Nichia Corporation and Toyoda Gosei Co., Ltd. concerning a blue LED made using gallium nitride. There was extensive media coverage about the blue LED that couldn't be marketed because of the patent dispute. Urgent steps were needed to resolve this problem so that Sony could introduce its blue-violet semiconductor laser. However, Nichia Corporation took the position that it would sell products but not the technology, and that it would opt for licensing if there were complementing technologies. Fortunately, Sony had laser manufacturing patents, expertise and commercialization experience dating back to the CD era. We also had manufacturing facilities with world-class technology, including Sony Shiroishi Semiconductor Inc. (Sony Shiroishi), the Sony's Group's semiconductor laser manufacturer.
We negotiated persistently with Nichia Corporation for four-and-a-half years, with strong backing from the Patent Department and other units. This hard work eventually paid off, and we reached the conclusion that the quickest way to bring commercial products to market was to link Sony's semiconductor laser manufacturing technology with Nichia Corporation's basic patents for gallium nitride. In late 2002, the two companies began to collaborate on the development of a blue-violet semiconductor laser for use in optical disc applications. In April 2004, we signed a cross-licensing agreement relating to patents for a blue-violet semiconductor laser.