Manchester University spinout Nanoco Group plc has ended its planned legal action against Shoei Chemical Inc. and Shoei Electronic Materials.

The listed Runcorn firm develops and manufactures cadmium-free quantum dots and other nanomaterials. These are used in monitors, TVs and infra-red sensors.

Last year the manufacturer of quantum dots settled a separate legal case with South Korean multinational electronics corporation LG Technologies over alleged patent infringements.

In 2023 it won $150m in a legal dispute with Samsung, settling on a no fault basis for the alleged infringement of the group’s intellectual property.

Nanoco, which won $150m from Samsung, settles lawsuit with LG

In the latest case, Nanoco had accused Shoei of infringing the company’s intellectual property but told the London Stock Exchange this morning (Thursday) that the legal action had ended.

In a statement, the company said: “The term sheet details that no compensation will be payable by either party, and both parties will be responsible for their own costs incurred.

“Pursuant to the term sheet, among other things, Nanoco covenants not to sue Shoei, its customers, and suppliers for use of Nanoco’s Quantum Dot patents for the display field, and Shoei covenants not to sue Nanoco, its customers, and suppliers for use of Shoei’s QD patents for the sensing field.

“The parties have agreed in good faith to negotiate an agreement reflecting the term sheet as well as other deal terms. All other terms of the term sheet are confidential.”

Nanoco is a world leader in the development and manufacture of cadmium-free quantum dots and other specific nanomaterials emanating from its technology platform.

Quantum dots are a nanomaterial 1,000 times smaller than a human hair that significantly enhance the colour and gamut visible to the human eye when light is shone through them. This technology usually contains cadmium, a toxic heavy metal.

In February 2026, Nanoco’s board revealed it was no longer actively seeking a buyer and CEO Dmitry Shashkov was leaving his role.

As part of the changes, Jalal Bagherli became executive chairman, while Liam Gray moved from his role as CFO to interim CEO.

Nanoco has c.40 staff.