Hong Kong's Cosmos Machinery Co. Ltd. has accused rival Battenfeld Extrusionstechnik GmbH of mischaracterizing a Chinese court ruling in an intellectual property lawsuit between the firms.
Battenfeld's China subsidiary in Shunde said in late December it had won a lawsuit in a Dongguan court against Cosmos and three of its subsidiaries for illegally using copies of Battenfeld machinery designs in their polyethylene pipe extrusion lines.
Cosmos, one of China's largest plastics equipment makers, said in a Jan. 18 news release that the decision was not final and the verdict was being appealed in a higher-ranking court.
The lower Dongguan Municipal People's Court last month ruled against one of the three Cosmos subsidiaries in the case, Donghua Machinery Ltd., but rejected charges against Dongguan Cosmos Machinery Ltd. and Dongguan Welltec Machinery Ltd., Cosmos claims in its release.
According to a copy of the court ruling, which was supplied to Plastics News by Cosmos, Donghua infringed on Battenfeld's intellectual property by making single-screw extruder model P0450. The ruling, dated Nov. 8, ordered Donghua to destroy all records that contain Battenfeld's commercial secrets, and equipment and molds made with the drawings, and pay a fine of 500,000 yuan ($71,000).
The PE pipe extrusion technology - at issue - is commonly applied by many companies and industries in China, Cosmos said.
``It is a shame for Battenfeld to misstate the fact to denigrate [Cosmos],'' the release said.
Bad Oeynhausen, Germany-based Battenfeld first sued Cosmos in 2003. The firm claimed in a December news release that the lawsuit judgment ``established beyond doubt'' that all three Cosmos companies illegally used Battenfeld designs, including for extrusion dies and downstream equipment.
Battenfeld said it has sold more than 200 extrusion lines in China.