The University of Texas System and Canada-based utility corporation Hydro-Quebeare are suing Japanese telecommunications firm Nippon Telegraph and Telephone Corporation, claiming a visiting scientist from NTT stole technology research from a UT laboratory.
In the suit, filed June 15, 2001, the System and its research affiliate HQ claim scientist Shigeto Okada unlawfully acquired research involving the development of high-performance lithium batteries from the University's Materials Science and Engineering Labs between 1993 and 1994. The plaintiffs claim that NTT's Japanese patent on the battery technology is costing them an estimated $500 million a year in potential revenues from U.S. patent royalties.
Attorneys from the Dallas-based firm Bickel and Brewer representing the plaintiffs said NTT's patents are interfering with the University and HQ's ability to license the technology in the United States.
According to court documents, Okada came to the University in October 1993 to work as a researcher with Professor John B. Goodenough of the materials science and engineering department. Goodenough, known for his research in the field of materials science, helped to facilitate the production of high-performance batteries used in cell phones, laptop computers and other electronic devices.
From 1993 to 1995, Goodenough and his team developed materials for the production of large industrial batteries. According to a court petition, in 1993 NTT asked Goodenough to take on Okada as a researcher and "post-doctoral scientist to receive training in the field of battery technology." According to the petition, Goodenough approved NTT's request on the condition that the company recognize all research and development was to remain confidential and the exclusive property of the University. Okada received full access to all research and resources associated with the project and was also offered assistance with his research.
University and HQ officials allege Okada revealed confidential information to NTT after returning to Japan in 1994. The company filed a Japanese patent based on Goodenough's research and development, and published confidential University and HQ technology. Attorneys for the plaintiff are charging NTT with unlawful appropriation of information regarding "one of the most significant innovations in materials science in the past decade."
According to the documents, University scientists remained unaware of NTT's Japanese patent until 2001. Negotiations early that year with Sony Corporation and Matsushita Battery "identified the existence of NTT's" patent. The plaintiffs claim this compromised Goodenough's research and halted any commercial progress of the technology in the United States.
Goodenough and NTT officials could not be reached for comment Monday.
NTT is the largest telecommunications company in Japan and the second largest in the world, and has offices in 12 countries, including the United States.
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