The recent IP chatter in Japan has shifted to Japan’s steel titan Nippon Steel’s suing Automaker titan Toyota. Nippon Steel announced on October 14 that it is suing Toyota, a business partner, and Chinese steel rival Baosteel, for infringing a patent important to making non-oriented magnetic steel sheets that sustain electric and hybrid car technology. Nippon Steel is seeking over US$ 175 million (JPY 20 billion) from each of the other parties and an injunction against Toyota’s making or selling cars with Baosteel’s allegedly infringing materials.[1, 2]
Toyota used to purchase the non-oriented magnetic steel sheets for motors of its popular hybrid cars from Nippon Steel, but negotiations for increased orders fell apart after Nippon Steel sought a price raise on its products.[2] Toyota ended up asking Baosteel to supply after verifyits its technology was not infringing patents, but Nippon Steel says its investigation proved Baosteel’s products are far too close to its patent claims to be permissible.[3]
For some time, this patent infringement case will likely draw attention, for it brings together both concerns by Japanese companies over its competitive edge over other countries’ manufacturers in specialized fields like these steel sheets, possible theft of technology,[3] and the tension that harmony-loving Japanese will feel about two beloved national manufacturers’ fighting each other.
Later developments: see this article.
* The information provided on this website is for informational purposes only and is not intended as legal advice.
** For questions or consultation, please contact us for more information.
Contact: Taro Yaguchi
Sources
[1] Nippon Steel. “当社無方向性電磁鋼板特許に関する訴訟の提起について [Our lawsuit regarding a patent for non-oriented magnetic steel sheets].” PDF. https://www.nipponsteel.com/common/secure/news/20211014_100.pdf Press release. October 14, 2021. Accessed October 22, 2021.
[2] ARAI Mieko. “トヨタが日本製鉄に訴えられた真の理由、中国と日鉄の二股が招いた「2年戦争」の全内幕 [The real reason Toyota was sued by Nippon Steel: the whole inside story of the doublecrossing of China and Nippon steel that led to a ‘two-year’s war’].” https://diamond.jp/articles/-/284749 DIAMOND Online. October 18, 2021. Accessed October 22, 2021.
[3] Tim Kelly, Yuka Obayashi, Aaron Sheldrick, Maki Shiraki, Ritsuko Shimizu and Min Zhang; edited by David Dolan and Ana Nicolaci da Costa. “Explainer: Why is Toyota being sued by supplier Nippon Steel?” https://www.reuters.com/business/autos-transportation/why-is-toyota-being-sued-by-supplier-nippon-steel-2021-10-20/ Reuters. October 21, 2021. Accessed October 22, 2021.
Header image by Hermann Traub from Pixabay
