Recently, regarding to the appeal of American patents 6,491,765 and 6,537,385 which
China Rare Earth Industrial Technology & Strategy Union was against Hitachi metals,
United States Patent and Trademark Office (USPTO) has made final written ruling that
both patents invalid for all appealed rights.
Headquartered in Tokyo, Hitachi Metal is the largest company in Sintered NdFeB
production and sales. It has acquired plenty of patents by means of acquisition and
self-research, bearing more than 600 patents on Sintered Neodymium and related
The company is permitted to produce the sintered NdFeB magnets by buying the license,
provided by Hitachi Metals. There are 8 licensed companies in China. Prohibited by the
patents, other majority companies beyond the 8 can not do business with the high end
customers in USA, Europe and Japan, which leads overcapacity in sintered neodymium
industry and unreasonable industrial structure.
In order to break the patents blockade, China Rare Earth Industrial Technology & Strategy
Union was founded in August, 2013 by 7 companies in China.
On August 11, 2014, the Union appealed to USPTO that it was invalid procedure of the
two patents 6,491,765 and 6,537,385 owned by Hitachi Metals. On Feb 8, 2016, USPTO
final judgment announced that both patents invalid.