04 August 2011 21:38 [Source: ICIS news]
HOUSTON (ICIS)--A US district court will allow Invista to proceed with a trade-secrets lawsuit against Frontech, a Houston-based firm which is competing with Invista in China's butanediol (BDO) market, the company said on Thursday.
Invista sued Frontech in June 2010, accusing the company of stealing trade secrets that covered Invista's process of making BDO.
Invista and Frontech compete in licensing BDO manufacturing technology in China.
Invista accused Frontech of using its technologies for at least two projects – the Shaanxi Delin Chemical Industry project and the Yunnan Yunwei project.
At the time of the lawsuit, the companies were bidding on at least two – and possibly three – major BDO projects, Invista said. One of those bids included the GD Younglight Energy and Chemical project.
Frontech denied that it stole Invista's technology.
Frontech also filed a counter-claim against Invista, accusing it of filing the lawsuit solely to harass Frontech. Frontech alleged that the lawsuit was part of a smear campaign intended to make it less likely to win business in China.
Frontech also alleged that it lost the Younglight bid because Invista published a news release about the lawsuit.
The US District Court for the Southern District of Texas dismissed Frontech's counter-claims. Meanwhile, the court allowed Invista to proceed with most of its claims.
Invista is a subsidiary of Koch Industries.
A lawyer for Frontech had no comments because the case is still pending.
For more on BDO visit ICIS chemical intelligence
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