Solvay Wins Chinese Patent Fight, Denies Indupa Snag
In two patent cases brought against China's HySci (Tianjin) Specialty Materials, Solvay has been awarded damages of €670,000 and won a court order mandating that HySci immediately cease producing and selling certain rare earth mixed oxides used in automotive catalysts.
The court of first instance in Tianjin ruled in December that the Chinese company had infringed Solvay's patents since 2004. In consequence, it ordered HySci to immediately discontinue production and sale of seven mixed oxides grades. The damage award was based on the profits made from the 189 tonnes of mixed oxides sold from 2004 onwards. The company also was ordered to cover most of Solvay's legal expenses.
In a separate case, in which the ruling is final, the high court in Beijing, China, confirmed the validity of Solvay's patent, upholding an earlier ruling by the country's State Intellectual Property Office. HySci had claimed the patent was invalid.
Du Hua, president Solvay Rare Earth Systems, said he is pleased about the two "landmark rulings" in China, as they will strengthen the Belgian chemical producer's intellectual property rights (IP) position in one of the world's main growth markets for rare earth mixed oxides.
"IP enforcement is essential to support Solvay's long-term research and development for higher performance and value-added mixed oxides, the manager said, adding that "it also helps to ensure a level playing field for our customers." Solvay is the world leader in rare earth performance materials for automotive catalysts, of which rare earths mixed oxides are among the main building blocks.
In other news, Solvay has denied that its sale of its 70.59% stake in Solvay Indupa to Brazilian petrochemical giant Braskem has hit a snag, as reported by some media. The remaining shares in the Argentina-based PVC producer are publicly traded, which obliges Braskem to launch a tender offer. However, Solvay said the success of the share offer will have no effect on its divestment plans.
Subject to regulatory approval, Solvay plans to merge its PVC activities with those of Switzerland-based Ineos.
