Dow and JM Win China IP Case

18.10.2020 - Dow and Johnson Matthey (JM) have won a second court case in China over infringement of their jointly owned LP Oxo technology for producing oxo-alcohols.

The Jiangsu High People’s Court ruled in July that Shanjun Clean Energy Technology had “illicitly obtained and infringed trade secrets” owned by Dow Global Technologies and JM and ordered the Chinese group to pay “significant” compensation.

“The ruling demonstrates fair enforcement of trade secret rights and commitments of the US and China’s Phase One Agreement and China’s commitment to improve intellectual property rights,” said Yoke Loon Lim, president of Dow Greater China. “This enforcement is critical to protect the legitimate operations and economic resiliency of domestic manufacturers in China, the US and around the globe.”

JM’s managing director of efficient natural resources, John Gordon, added that there are 20 plants in China operating licensed LP Oxo technology that will benefit from the ruling.

The case marks the second in China in which Dow and JM have successfully defended their intellectual property for LP Oxo technology. In 2017, an arbitration panel of the Stockholm Chamber of Commerce held that Shandong-based Luxi Chemical Group had violated its secrecy and non-use undertaking by using Dow’s and JM’s protected information in the design, construction and operation of its butanol and 2-ethylhexanol plants.

The court awarded Dow and JM approximately $100 million. The companies said they were pursuing appropriate actions to enforce the award.