Benzinga | Oct 14, 2021 01:03PM EDT

Nippon Steel Alleges Toyota Motor Of Patent Infringement: WSJ

* 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.