Two Chinese companies and a local firm are embroiled in a copyright tussle following the installation of two scanners for cargo trucks for the Royal Customs Department in Bukit Chagar, Johor.
China-based Nuctech Company Ltd, which has been providing scanners for the department, filed a suit against local company Pan Asiatic Technologies Sdn Bhd (PAT), and a rival Chinese company consisting its former employees for alleged copyright infringement.
It claimed that the facility in Bukit Chagar had used its patented technology for the scanning of cargo trucks coming across the causeway.
Besides naming PAT and its directors, including former political secretary to Najib Abdul Razak, when he was DPM, Alies Anor Abdul, it also named a third party Powerscan Company Ltd as defendants in the suit filed last November.
Powerscan had allegedly been providing the scanners in Bukit Chagar.
In turn, Powerscan filed a counter-claim against Nuctech and its partner Tsinghua University to set-aside the patented rights claimed by Nuctech, arguing that the technology it provided was their own which was filed in Malaysia and named.
PAT entered into an agreement with the Malaysian government on April 30 last year to provide four scanners, which Nuctech claimed that the technology provided by Powerscan is similar or identical to the infringing system.
Nuctech claimed that it applied to have the system patented in 2006 and was granted the patent on Jan 14, 2011. The company also filed a similar lawsuit against Powerscan and its affiliate Beijing Energy Detection Inc.
Nuctech is seeking an order that the defendants had delivered the infringing system to the Customs Department, an inquiry of the damages suffered as well as aggravated and exemplary damages.
PAT, in their statement of defence, claimed that it was seeking an alternate scanning system after Nuctech's system, which was installed in North Port, Port Klang in 2010, had frequently broke down.
As a result of this, it had approached Powerscan that same year as an alternative to supply the equipment in Johor.
The local Bumiputera company, whose directors Abdul Karim Mohd Hanapiah and Goh Chu Leong were also named as defendants, then hired Powerscan to supply the new equipment sought by the Customs Department.
PAT entered into agreement with Nuctech staff?
The hearing of the suit began last week where Nuctech project manager Yang Zhijun told the Kuala Lumpur High Court that it was not possible for PAT to approach Powerscan in 2010 as the rival company was only incorporated in 2011.
Yang told the court that the company had been selling its scanners in 130 countries and had more than 1,000 of its technology patented in China and internationally.
The witness also said it was discovered in January 2013 that the Customs Department was installing four new scanners at the Bukit Chagar facility and the equipment was to be brought in by PAT and supplied by Powerscan along with Beijing Energy Detection Inc.
Powerscan, Yang said, was represented by Sun Xioming, who was Nuctech’s director of international business and responsible in providing Nuctech's products to Malaysia.
"Sun resigned from Nuctech in May 2011 and established Powerscan.
"Powerscan was incorporated in May 2011. In light of this, it would not be possible for PAT to approach Powerscan to provide the equipment (scanners in 2010) for the quotations for the supply of the scanner systems at Bukit Chagar.
"If indeed PAT approached Sun, in or around 2010, it was when Sun was still Nuctech's director of international business operations at that time.”
An American Physics professor, David S Koltick, who was hired by Nuctech to look into the Bukit Chagar facility, testified that in his expert opinion, there were similar characteristics to the system employed at Bukit Chagar with the one patented by Nuctech.
"There is no material difference in operations between (the two systems)," he told the court.
UTM prof: No infringement
Koltick's testimony was challenged by Prof Jasmy Yunus, from University Teknologi Malaysia, who was hired by PAT. He testified that PAT's scanners did not infringe the Nuctech's patent.
Goh, the Malaysian director of PAT, testified that he had dealings with Nuctech in the past to provide the scanners in Port Klang and Penang.
He said when it entered into an agreement with Powerscan, PAT did not know the possibility that the scanners had infringed Nuctech's patent.
Goh claimed that Nuctech's application for the patented system in 2006 was rejected by the Chinese authorities.
"Powerscan had through its lawyers verified that the system provided is different from that by Nuctech," he said, adding Nuctech's action was aimed at making it difficult for the company to obtain loans to finalise and disburse payment for the deal and injure its reputation.
Goh further claimed that Nuctech's representatives approached him early this year to provide the equipment instead of taking it from Powerscan but had twice declined the offer.
Powerscan's senior hardware engineer Wang Shaofeng testified that the patent claimed by Nuctech was not valid.
The company's chief engineer, Hu Xiaowei, also testified that the system employed by Powertech was not a replication.
The trial continues today before Judicial commissioner Azizah Nawawi.
China-based Nuctech Company Ltd, which has been providing scanners for the department, filed a suit against local company Pan Asiatic Technologies Sdn Bhd (PAT), and a rival Chinese company consisting its former employees for alleged copyright infringement.
It claimed that the facility in Bukit Chagar had used its patented technology for the scanning of cargo trucks coming across the causeway.
Besides naming PAT and its directors, including former political secretary to Najib Abdul Razak, when he was DPM, Alies Anor Abdul, it also named a third party Powerscan Company Ltd as defendants in the suit filed last November.
Powerscan had allegedly been providing the scanners in Bukit Chagar.
In turn, Powerscan filed a counter-claim against Nuctech and its partner Tsinghua University to set-aside the patented rights claimed by Nuctech, arguing that the technology it provided was their own which was filed in Malaysia and named.
PAT entered into an agreement with the Malaysian government on April 30 last year to provide four scanners, which Nuctech claimed that the technology provided by Powerscan is similar or identical to the infringing system.
Nuctech claimed that it applied to have the system patented in 2006 and was granted the patent on Jan 14, 2011. The company also filed a similar lawsuit against Powerscan and its affiliate Beijing Energy Detection Inc.
Nuctech is seeking an order that the defendants had delivered the infringing system to the Customs Department, an inquiry of the damages suffered as well as aggravated and exemplary damages.
PAT, in their statement of defence, claimed that it was seeking an alternate scanning system after Nuctech's system, which was installed in North Port, Port Klang in 2010, had frequently broke down.
As a result of this, it had approached Powerscan that same year as an alternative to supply the equipment in Johor.
The local Bumiputera company, whose directors Abdul Karim Mohd Hanapiah and Goh Chu Leong were also named as defendants, then hired Powerscan to supply the new equipment sought by the Customs Department.
PAT entered into agreement with Nuctech staff?
The hearing of the suit began last week where Nuctech project manager Yang Zhijun told the Kuala Lumpur High Court that it was not possible for PAT to approach Powerscan in 2010 as the rival company was only incorporated in 2011.
Yang told the court that the company had been selling its scanners in 130 countries and had more than 1,000 of its technology patented in China and internationally.
The witness also said it was discovered in January 2013 that the Customs Department was installing four new scanners at the Bukit Chagar facility and the equipment was to be brought in by PAT and supplied by Powerscan along with Beijing Energy Detection Inc.
Powerscan, Yang said, was represented by Sun Xioming, who was Nuctech’s director of international business and responsible in providing Nuctech's products to Malaysia.
"Sun resigned from Nuctech in May 2011 and established Powerscan.
"Powerscan was incorporated in May 2011. In light of this, it would not be possible for PAT to approach Powerscan to provide the equipment (scanners in 2010) for the quotations for the supply of the scanner systems at Bukit Chagar.
"If indeed PAT approached Sun, in or around 2010, it was when Sun was still Nuctech's director of international business operations at that time.”
An American Physics professor, David S Koltick, who was hired by Nuctech to look into the Bukit Chagar facility, testified that in his expert opinion, there were similar characteristics to the system employed at Bukit Chagar with the one patented by Nuctech.
"There is no material difference in operations between (the two systems)," he told the court.
UTM prof: No infringement
Koltick's testimony was challenged by Prof Jasmy Yunus, from University Teknologi Malaysia, who was hired by PAT. He testified that PAT's scanners did not infringe the Nuctech's patent.
Goh, the Malaysian director of PAT, testified that he had dealings with Nuctech in the past to provide the scanners in Port Klang and Penang.
He said when it entered into an agreement with Powerscan, PAT did not know the possibility that the scanners had infringed Nuctech's patent.
Goh claimed that Nuctech's application for the patented system in 2006 was rejected by the Chinese authorities.
"Powerscan had through its lawyers verified that the system provided is different from that by Nuctech," he said, adding Nuctech's action was aimed at making it difficult for the company to obtain loans to finalise and disburse payment for the deal and injure its reputation.
Goh further claimed that Nuctech's representatives approached him early this year to provide the equipment instead of taking it from Powerscan but had twice declined the offer.
Powerscan's senior hardware engineer Wang Shaofeng testified that the patent claimed by Nuctech was not valid.
The company's chief engineer, Hu Xiaowei, also testified that the system employed by Powertech was not a replication.
The trial continues today before Judicial commissioner Azizah Nawawi.
Is there any update on this story? Is Customs still buying the scanners? What was the outcome of the law suit?
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