Shuji Nakamura is confident that his court battle can radically change the relationship between Japanese companies and their in-house inventors.

"If I win, there would be a storm of litigation. A slew of in-house researchers would file lawsuits (against their companies)," said Nakamura, the inventor of the blue light-emitting diode, which is widely used for electronic screens. "Or before such a thing happens, companies would opt for out-of-court settlements."

Nakamura is waging litigation against his former employer, Nichia Corp., a Tokushima-based chemical firm, demanding a ¥2 billion reward for his breakthrough invention, which was made in 1993 while working for the company.