POSCO has suffered a blow to its intellectual property (IP) defense capabilities after three of its patents related to hot-press forming steel sheets for automobiles were ruled invalid or partially valid in China. With automakers and global steel competitors forming a coalition to invalidate its patents, a strategy that has now become a reality, the burden on POSCO to protect its core material technology and maintain supply chain leadership is expected to grow.
According to South Korean media outlet The Guru and the China National Intellectual Property Administration (CNIPA) on March 23, recent invalidation trials targeting three POSCO patents resulted in one being declared fully invalid and two partially valid. This follows challenges filed by Chinese electric vehicle maker ‘NIO’, Japan’s Nippon Steel, and ArcelorMittal, one of the world’s largest steel companies.
The invalidated patents are “Hot-formed part and manufacturing method thereof” (Patent No. 113166910), “HPF formed part with excellent peeling resistance and manufacturing method thereof” (Patent No. 106133179), and “Coated steel sheet with excellent post-hot-forming stamping properties and method for manufacturing hot-formed parts” (Patent No. 113195774). Among these, the patent for “Hot-formed part and manufacturing method thereof” was ruled entirely invalid.
The other two patents were declared partially valid, with only some claims upheld. It is reported that most of the product-related scope of rights was nullified, leaving only rights centered on the manufacturing method. This has led to analysis that POSCO’s patent influence has weakened, as product patents apply directly to finished vehicles and have strong regulatory power, whereas manufacturing method patents are difficult to prove infringement for, limiting their practical protective effect.
The hot-press forming steel sheet in question is an ultra-high-strength material used in car bodies. The core of the process involves heating the steel sheet to a high temperature, then rapidly cooling it while shaping it in a mold to increase its strength. Because it can minimize body deformation in a collision while reducing weight, its application in electric vehicles and other cars is expanding.
This invalidation trial is drawing industry attention as an unusual case where an automaker and competing steel companies shared interests and simultaneously attacked a specific patent. According to Chinese intellectual property media outlet ‘IPRdaily’ and others, a direct legal battle with POSCO is behind NIO’s participation in this invalidation trial.
POSCO had previously filed a patent infringement lawsuit against NIO in China based on the hot-press forming steel sheet patents. In response, NIO is seen as having launched a countermeasure by filing for an invalidation trial to undermine the basis of the lawsuit by challenging the validity of the patents themselves.
Global steelmakers such as Nippon Steel and ArcelorMittal also joined in. As competitors vying with POSCO for market share in the automotive steel sheet market, their interests aligned in lowering the patent barriers POSCO has built, which is interpreted as them forming a ‘united front’.
It has been confirmed that following the CNIPA’s invalidation decision, POSCO’s patent infringement lawsuit against NIO in China was withdrawn. However, POSCO’s position is that the withdrawal of the lawsuit against NIO is unrelated to the CNIPA’s decision. The company stated that the withdrawal was a strategic move for efficiency, as the lawsuit had been pending for a long time without substantial progress, and it plans to refile soon.
This decision is an administrative judgment at the CNIPA level. Both parties have the right to file an administrative lawsuit with the Beijing Intellectual Property Court within three months of receiving the decision. As POSCO plans to continue its response by seeking a judgment from a higher court, the final conclusion on the validity of the patents has not yet been determined.
A POSCO official stated, “We find it difficult to accept the CNIPA’s decision as we believe it contains errors.” They added, “We are preparing to file a lawsuit to nullify the invalidation ruling with the Beijing Intellectual Property Court around early April, and through this lawsuit, we will correct the substantive truth and thoroughly defend the rights of our company and our clients.”
The official continued, “POSCO has been achieving positive results in the United States and China in disputes with global steelmakers like ArcelorMittal and Nippon Steel over patents related to HPF formed parts and manufacturing methods.” They added, “We expect to secure favorable outcomes in the remaining disputes as well.”
