Nippon Steel sues Toyota, Baosteel over patent infringement

Nippon Steel has filed patent infringement lawsuits against Toyota Motor and Baoshan Iron & Steel with a Tokyo district court, Nippon Steel said on Thursday.

The steelmaker is seeking 20 billion yen ($176 million) in damages from each company, accusing the two companies to have infringed on their patents on non-oriented magnetic steel sheets that are utilized in electric vehicles.

Two of Japan’s manufacturing giants, the country’s biggest steelmaker, and automaker, taking it to court is a rare occurrence and shows the high stakes involved in materials production as the worldwide low-carbon revolution takes hold.

Baosteel and Toyota have rejected these claims.

Nippon Steel decided to take legal action as it could not reach a resolution through talks with both companies, it said.

The steelmaker also filed a petition for a preliminary injunction restricting Toyota from manufacturing and selling motor-driven vehicles that have used the electrical steel sheets allegedly breaching its patents.