Nippon Steel Sues POSCO on Grain Oriented Electrical Steel Property

Nippon Steel announced on Wednesday the firm filed civil lawsuit against POSCO of South Korea, POSCO Japan as defendants in Tokyo district court on Nippon Steel’s technology of grain oriented electrical steel. Nippon Steel seeks 100 billion yen compensation for damages and injunction against manufacture and sale of POSCO’S electrical steel under unfair competition prevention act based on illicitly acquiring and using Nippon Steel’s trade secrets.

Nippon Steel also filed civil lawsuit against the former employee claiming his involvement in the illicit acquisition and use of the trade secret by POSCO. Nippon Steel seeks compensation for the damages under unfair competition prevention act.

Nippon Steel also filed civil lawsuit in USA against POSCO and the US subsidiary for infringement of certain Nippon Steel’s US patents. Nippon Steel seeks damages and injunction against continued infringement of Nippon Steel’s patents.

Nippon Steel started the commercial production of grain oriented electrical steel in 1953 based on technology from Armco or current AK Steel of USA. Nippon Steel developed original technology to make high performance electrical steel in 1968. The firm provided the license to other makers in USA and Europe. The firm provides the technology only to Wuhan Iron and Steel of China in Asian market while Nippon Steel has kept the secret of production technology.

POSCO started similar products around 2005. Nippon Steel has warned violation of patents to POSCO. Nippon Steel recognized in October 2007 former POSCO’s employee provided the technology to Baoshan Iron & Steel for 5 billion won. The former employee argued the provided technology was Nippon Steel’s technology document, not POSCO’s technology.

Nippon Steel continued warning to POSCO and sought disclosure of investigation document to South Korean prosecutor but Nippon Steel couldn’t get solution. Nippon Steel decided the legal action.

Nippon Steel entered into strategic alliance with POSCO in 2000. The alliance provided various accomplishments. Nippon Steel intends to keep the alliance activities.

POSCO said on Wednesday the firm didn’t harm Nippon Steel’s technology.