Nippon Steel Alleges Toyota Motor Of Patent Infringement: WSJ

·1 min read
  • Nippon Steel Corp (OTC: NPSCY) alleged Toyota Motor Corp (NYSE: TM) and Baoshan Iron & Steel Co of infringing patents for a steel material in electric motors, the Wall Street Journal reports.

  • 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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