Claims for another 66 mln: litigation between COSMX and ATL-ND escalated

2022/08/17

 

The new energy battery patent dispute between COSMX (珠海冠宇电池股份有限公司) and ATL-ND (宁德新能源科技有限公司) escalated, according to the announcement issued by COSMX on July 11, who recently received subpoenas of a few patent lawsuits filed by ATL-ND in China and the United States, respectively.

Based in Zhuhai, Guangdong Province, Zhuhai Cosmx Battery Co., ltd (COSMX) just officially appeared on SSE STAR Market(上海证券交易所科创板) last year, focusing on the field of new energy lithium “small” battery. With the support of the government and the capital, COSMX rapidly gained stabilization in the new energy battery industry and has quickly secured the second position in the "small battery" field.

However, since it became floated on the stock market last year, COSMX has been burdened with patent litigations. It is informed that, only recently, COSMX has another six new patent lawsuits to face in China, as well as patent infringement lawsuits filed by ATL-ND in the U.S. District Court for the Eastern District of Texas.

On January 7 of this year, COSMX issued its proclamation on the progress of its first patent lawsuit since its float on SSE STAR Market, stating that the company (including its wholly-owned subsidiary in Chongqing) had been sued for patent infringement in Fuzhou by ATL-ND and ATL-SSL(东莞新能源科技有限公司). The announcement by COSMX on July 8 disclosed that the two companies added another six patent infringement allegations, arguing that COSMX had implemented their patented technologies without permission, infringing the plaintiffs’ patent rights, and the plaintiffs requested that the COSMX be ordered to immediately stop the manufacture, use, sale and export of the battery cell products related to the disputed patents, as well as economic losses awarded to the plaintiffs with reasonable costs incurred during their endeavor to stop the infringement, the total amount of which is RMB 66 million.

Also on July 8, another battle between COSMX and ATL-ND in the U.S. officially entered the litigation stage. According to relevant information, the case involves two patents of ATL-ND in the U.S.

The dispute between two domestic leading enterprises in the new energy battery industry has extended to other countries, implying that the competition for domestic new energy batteries has gradually become white-hot. In addition to the expansion of the battlefield, the claims of compensations in new energy battery patent disputes also climbed—— In May, CATL’s revision of the compensation target against CALB to more than 500 million RMB has attracted widespread attention.

These cases reflect the vitality and vigor of the emerging industry. Meanwhile, the eventual solutions of those legal disputes, especially the according judicial decisions will set the tone for the future direction of the industry, which are worth continuous concerns.