Nippon Steel has long supplied the backbone material to Toyotas. Recently, Toyota also partnered with a rival supplier, Chinese steelmaker Baoshan.
Nippon alleged that Baoshan infringed on a patent for a material used in the steel sheets that form the core of some electric car motors. Toyota continued buying from Baoshan despite knowing of the alleged infringement Nippon said.
Nippon sought an injunction to prevent the manufacture and sale of Toyota vehicles that use motors with the alleged material and damages equivalent to $176 million. It sought the same amount from Baoshan.
Toyota refuted the allegations and said Nippon Steel and Baoshan should have settled the matter between themselves.
Nippon wanted to keep selling to Toyota despite the suit to protect its intellectual property.
Price Action: TM shares traded lower by 0.36% at $175.14 on the last check Thursday.
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