Sekisui files 116M yuan claims amid Zhejiang Decent's IPO review

Zhejiang Decent New Material Co., Ltd. is facing new patent infringement lawsuits filed by its Japanese rival Sekisui Chemical Co., Ltd, as revealed in the Chinese functional membrane materials manufacturer's response to the listing committee last Friday.

According to the disclosure, since June 30, 2023, Sekisui Chemical has lodged five separate patent infringement lawsuits against Zhejiang Decent New Material, seeking a total of over 116 million yuan in damages.

The lawsuits pertain to five Chinese invention patents related to laminated glass, identified by the following patent numbers: ZL201580016679.6, ZL201680018425.2, ZL201480033768.7, ZL201680009112.0, and ZL201080059676.8.

As of now, the China National Intellectual Property Administration (CNIPA) has declared patent ZL201580016679.6 invalid due to lack of novelty. Patent ZL201680018425.2 has been upheld as valid, while the validity of the remaining three patents is still under review.

Established in 2006, Zhejiang Decent New Material positions itself as a high-tech enterprise specializing in the production of high-value interlayer materials. The company's main products are PVB resin powder and PVB interlayer films, which are widely used in automotive, architectural, photovoltaic, and other industries.

In its prospectus, Zhejiang Decent New Material outlined the competitive landscape for PVB interlayer films. Sekisui Chemical and other international manufacturers lead the market, while domestic companies like Zhejiang Decent New Material occupy the second tier.

As of 2021, Sekisui Chemical had a production capacity of 57,000 tons. By June 2023, Zhejiang Decent New Material had reached a production capacity of 55,000 tons, nearly matching that of Sekisui Chemical, with an additional 40,000 tons currently under construction.

Zhejiang Decent New Material's production capacity as of June 2023 is 55,000 tons, nearly equal to that of Sekisui Chemical, with an additional 40,000 tons of capacity under construction.

"This patent dispute highlights an ongoing struggle between an international PVB interlayer giant and a leading domestic competitor in the PVB market," commented a Chinese intellectual property analyst.

Notably, Sekisui Chemical launched its patent battle against Zhejiang Decent New Material almost simultaneously with the start of the company's IPO review.