Cargotec has filed a lawsuit in Sweden against SweFrame Port Equipment AB, claiming damages for the alleged theft and use of Bromma Conquip's sensitive product information.

Cargotec said in a press statement last week that the Swedish police searched SweFrame's premises and "confiscated Bromma drawings and other Bromma materials". Swedish local court Västmanlands tingsrätt has ordered SweFrame to comment on the claims, facts and circumstances in the lawsuit. A first hearing is expected to take place in September.

SweFrame after-sales manager Andy Lewis accuses Cargotec of choosing to "try using the legal system for marketing purposes", instead of competing with its products.

"If Cargotec had a substantial case, we cannot see why they use their huge media resources to proclaim their intentions like this in the press globally, instead of letting justice run its due course."

Lewis also claims Cargotec is trying to prevent SweFrame customers from signing some large orders through the publicity generated from its legal action.

Legal counsel for SweFrame, Lindahl KB, says that after reviewing Cargotec's arguments filed in a summons application with the Swedish court in June 2011, it concludes that the action is based on "erroneous and insufficiently disclosed facts".

According to Lindahl, one of Cargotec's assertions is that SweFrame spreaders Y40-E and Y45-E are "nearly identical copies" of Cargotec's second-generation Bromma electrical spreaders. Lindahl says that Cargotec has also made allegations against SweFrame personnel, which all involved have rejected.

Anne Westersund, Cargotec vice president - communications and marketing, tells Forkliftaction.com News that Cargotec discovered the alleged intellectual property theft after Bromma employees left the company and started working at SweFrame. "The first signs were observed in June 2010. These discoveries were followed up by a comprehensive internal review where Cargotec also used the assistance of an IT forensic company."

Westersund explains that the company's internal investigation strengthened its suspicions, leading to a police report. "The police decided to initiate criminal investigations in December 2010. [They] searched SweFrame's premises and confiscated computers and other materials. The police have since gone through the confiscated material [but] the review is ongoing due to the large amount of material to go through."

Cargotec filed its lawsuit against SweFrame at the end of May 2011 and the Swedish court accepted the lawsuit at the start of June 2011.

Westersund says the action was filed in Västmanlands tingsrätt in Västerås, and not a court in Stockholm, because SweFrame's registered address is in Västerås.

SweFrame was established about 18 months ago and focuses on container crane spreaders. The employees have 10 to 15 years' experience in the industry and were previously senior Bromma personnel. According to the company website, SweFrame is owned by "a consortium of private individuals from several heavy industries in Sweden". Lewis declined to provide further details on the company ownership.