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Hon Hai sues BYD over patent dispute

Hon Hai Precision Industry Co (鴻海精密), the world's biggest electronics component supplier, yesterday said it had filed a patent lawsuit against BYD Co in Hong Kong in the latest development of a legal battle with the Chinese firm.

It was the latest action to be taken by Hon Hai after filing suit in Shenzhen, alleging two former workers with its Chinese affiliates had leaked secrets to BYD in China last fall, Hon Hai spokesman Edmund Ting (丁祈安) said.

"BYD group is suspiciously talking to ex-employees of the company's overseas affiliates to provide it with the company's classified business secrets," Ting said in a filing to the Taiwan Stock Exchange yesterday.

The legal action aims to safeguard Hon Hai's interests and to prevent former employees from making a profit by stealing and infringing Hon Hai's intellectual property.

Shenzhen-based BYD supplies handset batteries to global handset vendors such as Nokia. It was reported that BYD had proposed joining forces with Hon Hai to make phones for Nokia.

BYD, established in 1995, also makes automobiles and electronics components. It has 90,000 employees, according to its Web site.

BYD shares traded down 6.12 percent at HK$2.90 on Hong Kong's main bourse yesterday. Hon Hai shares jumped 2.94 percent to NT$263 on the Taiwan stock exchange.
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