Nippon Steel drops patent lawsuits against Toyota and Mitsui

Japan's Nippon Steel said it has dropped its lawsuits against Toyota Motor and Mitsui & Co over patents on electrical steel sheets, but continues to seek damages from China's Baoshan Iron & Steel (Baosteel).

The Nippon Steel (5401.T) lawsuits, filed in 2021, sought damages from Toyota (7203.T) , Baosteel (600019.SS) , Mitsui (8031.T) and Mitsui & Co. Steel, alleging patent infringement. on sheets of non-oriented electrical steel.

The Japanese steelmaker said it had dropped its lawsuits against Toyota and Mitsui, dropping claims against them.

In a statement, Nippon Steel said it would pursue its case against Baoshan and "firmly defend its intellectual property rights as the fruits of its technological development."

Baosteel said it will continue to actively respond to the lawsuit and vigorously defend its rights and interests.

“Baosteel strictly complies with various laws and regulations, including intellectual property law, in both domestic and international business,” the company added in response to a Reuters request for comment.

“Continuing the dispute with Toyota is not in the interest of strengthening Japan's industrial competitiveness,” a Nippon Steel spokesman said, adding that Japan's auto and steel industries need to work together even more as global competition on decarbonization intensifies.

“We will further strengthen our efforts with Toyota in various areas, including vehicle electrification and decarbonization initiatives,” he added.

Nippon Steel's patent infringement suit against its key and longtime customer Toyota was the first.

The legal battle between two Japanese manufacturing giants, a major steelmaker and an automaker, meant the stakes in materials production were high amid the global low-carbon revolution.

Nippon Steel said electrical steel sheets are indispensable materials for vehicle electrification and are one of its key products to promote the decarbonization of automobiles, electrical products and power plants.

“Nippon Steel has decided to discontinue lawsuits regarding electrical steel sheet patents against Toyota filed in 2021,” Toyota said in a statement.