A LONG-running dispute between Japanese manufacturers Kobelco and Kato over commercial property rights is back in the law courts again.

Kobe Steel and its construction equipment subsidiary Kobelco Construction Machinery filed a lawsuit against Kato Works on 1 June claiming an infringement of its rough terrain crane designs.

Kato disputes the claim.

The lawsuit, submitted to the Kobe District Court, requested that Kato cease production and marketing of four models of rough terrain cranes and pay damages of ¥1.97bn ($16m) to Kobe Steel.

Kobelco spokesman Gary Tsuchida told Cranes Today: ‘Kobe Steel and Kobelco Construction Machinery’s basic stance is that companies should respect each others’ intellectual property. They also believe issues on intellectual property should be resolved amicably through discussions. Although the companies had been trying to resolve the issue since December 2000, talks broke down. Kobe Steel and Kobelco were unable to come to a settlement with Kato and had to take legal measures.’ The latest action concerns four Kato models: the 10t class MR 100Lsp and MR 100Lsp-V; and the 22t class MR 220 and MR 220sp. Due to model upgrades, the MR 100Lsp and MR 220 are no longer in Kato’s product line.

This is Kobe Steel’s second design infringement lawsuit against Kato. A final ruling by Japan’s Supreme Court in October 2000 upheld the ruling of the Tokyo High Court in January 1997 involving a similar mini rough terrain crane. The Tokyo High Court ordered Kato to cease the manufacture and marketing of the 10t class MR100 and compensate Kobe Steel for ¥450m ($3.6m) in damages.

Tsuchida said: ‘In both cases, the infringement suit covers the entire design concept of our rough terrain cranes. The downward-slanting boom and compact overall design can be said to be the most characteristic and visible aspects of our rough terrains, but the claim is not limited to just those two.’ Hiroyuki Suzuki, group manager of Kato Works’ product planning group, said in response: ‘We have been informed that Kobelco filed a lawsuit against us for allegedly infringing its commercial property. At the same time, we at Kato, as well as specialists in the industry, do not believe that Kato has infringed Kobelco’s commercial property in this particular issue.

‘We think that Kobelco has filed this lawsuit in retaliation for a lawsuit that we have filed against them for infringement of several of our patents.’ Kobelco pioneered the broad concept of the ‘nose down’ styling when it launched the RK 70, a 7t mini RT, in 1989. This crane was initially branded as the Lynx, a smaller sister to the Panther series of RTs. A key innovation of the Lynx series, however, was that the boom is stowed for travel at an angle (‘nose down’) instead of in a horizontal position. Kobelco subsequently produced the 16t RK 160 and, for Europe only, the 20t RK 200. Kato brought out its 22t rated MR 220 in 1992 and in 1997 began offering the 25t CR 250 for the European market.

All these cranes are designed for urban sites, hence they have come to be known as city cranes.