Japan's NTT subsidiary sued for software patent infringement

By Kim Bo-eun

A Korean information technology firm is waging a legal battle against a subsidiary of Japanese telecom giant NTT Communications, seeking compensation for the latter’s alleged infringement of a software patent.

The first hearing on the damage suit was held at the Seoul Central District Court, Friday.

According to the Korean firm STI, NTT used its technology related to credit card payments and reaped profits from it. It claims that the profit the company made until August 2010 amounts to 110 billion won.

"Korea is ahead of Japan in developing security solutions regarding credit card payments and related software," said an STI manager. "We filed the suit due to NTT's persistence in using the trial package despite our repeated requests for it to stop."

STI developed a program which speeds up the payment process, and acquired a patent for it. In 2005, NTT requested STI for a trial package which it said would determine whether it would continue to use the software after the trial period ends.

STI said that NTT continued to use the software even after the trial period ended, which it claims infringed on its copyrights.

The Korean firm filed the suit in June this year.

STI filed a similar compensation suit in Japan, but lost. It claims a Japanese court wasn’t fair in dealing with the case, rejecting its request for tests on whether NTT violated its patent.

STI argued that since the program was created by a Korean company, Korean courts also have jurisdiction.

“We cannot accept the ruling by the Japanese court which failed to review evidence that we submitted,” it said.

NTT, however, said that the case has already been settled in Japan. “As it is an illegitimate suit, request for compensation should be dismissed,” it said.

The headquarters of STI, founded by a Korean-Japanese, is located in Japan. The compensation suit was filed by its office in Korea.