Nippon Steel sues Japan business partner Toyota over patent

Nippon Steel Corp. is suing Toyota Motor Corp. over a patent for a technology used in electric motors in a rare case of legal wrangling between Japan’s top steelmaker and automaker over intellectual property

TOKYO -- Nippon Steel Corp. is suing Toyota Motor Corp. over a patent for a technology used in electric motors in a rare case of legal wrangling between Japan’s top steelmaker and top automaker over intellectual property.

Tokyo-based Nippon Steel filed the lawsuit Thursday in Tokyo District Court, demanding compensation for damages totaling 20 billion yen ($177 million). Also named in the lawsuit is Baoshan Iron & Steel Co., or Baosteel, a Chinese steelmaker that produces and supplies the steel that allegedly violates the patent.

Toyota said it learned of the lawsuit “with great regret,” stressing it had checked on possible patent conflicts with Baosteel. Toyota sees Nippon Steel as an “important business partner,” supporting the Japanese auto industry for years, the maker of the Prius hybrid and Lexus luxury models said in a statement.

Baosteel said it disagreed with Nippon Steel's claim, stressing it repeatedly tried to communicate with the steelmaker.