Danish Company wins important court case at Beijing’s High Court. By Michael Bladt, Managing Director, HASLE Refractories A/S

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After several cases of irregular exploitation of the company’s ISOMEMBRANE© technology in the period 2001 to 2006, HASLE Refractories A/S decided to sue its former partner Beijing Boiler Technology/Beijing Poly-tech (BTT) in 2006.

From 1999 BTT was licensee to the unique ISOMEMBRANE© technology developed by HASLE Refractories A/S. The technology is used for boiler penthouse sealing in power plants. The cooperation went very well the first few years, but suddenly BTT stopped paying their royalties, in spite of the fact that the Chinese company continued to market and sell the technology to an increasing number of plants – using the HASLE Refractories A/S name and logo.

This irregular use of the technology resulted in HASLE Refractories A/S initiating a law suit against BTT in the summer of 2006. The case came up for trial in June 2007 (at the ”Second Intermediate People’s Court, Beijing”) where the Court agreed that BTT had made unlawful use of the technology, the company name and logo of HASLE Refractories A/S.

Beijing High Court upheld the first verdict

After losing the court case BTT appealed the case to High Court. After hearing the case on 7 November 2007, the high court judge’s verdict came at the beginning of January 2008 – and it was in favour of HASLE Refractories A/S.

Consequently Refractories A/S was awarded compensation in the order of just over DKK 500,000 and BTT was banned from selling the technology of HASLE Refractories A/S and using the company’s name and logo. The compensation amount awarded is slightly lower than the amount awarded by the first court verdict, but the high court’s verdict is final and cannot be appealed by either of the two parties.

For HASLE Refractories A/S, this is a verdict of principle and the company’s CEO and owner, Michael Bladt wants to share his story with others ”in order to show that it is worthwhile even for small Danish companies to take cases to court abroad, if you have a real case. As a small company it is possible to market and sell your products in China as long as you make sure that you have an agreement which is totally unequivocal. At the same time appropriate control systems must be in place to safeguard your rights.” In conclusion Michael Bladt says, ”legal proceedings are very time consuming in China, but it is very positive that the final verdict affirms that the same legal principles apply in China as in most other countries; i.e. that written agreements have to be adhered to.”

HASLE Refractories A/S is located in Rønne on the island of Bornholm. CEO and owner is Michael Bladt. The company currently employs 50 people. It develops and produces high-quality refractory materials and membrane solutions, primarily for cement factories, incineration plants and power plants all over the world.

For further information please see: www.hasle-refractories.com
or you may contact Michael Bladt on mjb@hasle-refractories.dk
or phone +45 56 951800.

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