- 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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