Heisei Denden Sues Softbank over Alleged Unfair Competition

Telecom carrier Heisei Denden Co. has filed a lawsuit against Softbank Corp. and its subsidiary Japan Telecom Co., claiming they have been using confidential information to launch a discount fixed-line phone business without permission. The dispute arose from failed acquisition talks between Heisei Denden and Softbank earlier this year, where Heisei Denden provided information on its fixed-line services in 2003. Softbank allegedly used this information to launch a competing service, violating Japan's Unfair Competition Prevention Law.

Key Takeaways:

• Heisei Denden Co. has filed a lawsuit against Softbank Corp. and Japan Telecom Co. over alleged unfair competition in the fixed-line phone market.
• Softbank is accused of using confidential information provided by Heisei Denden during failed acquisition talks in 2003 to launch a competing service.
• Heisei Denden alleges that Softbank's actions violate Japan's Unfair Competition Prevention Law.
• Japan Telecom and Softbank deny using Heisei Denden's information to enter the new fixed-line business.
• The lawsuit seeks to prohibit Japan Telecom from starting the discount fixed-line service and to prevent Softbank from sharing Heisei Denden's confidential information.
• The case is currently being heard at the Tokyo District Court.

Statistics:

• Heisei Denden's fixed-line services were started in 2003.
• Softbank allegedly used confidential information from Heisei Denden to launch a competing service.
• The dispute arose from failed acquisition talks between Heisei Denden and Softbank in 2003.
• Japan's Unfair Competition Prevention Law prohibits the use of confidential information for unfair competition.

Sources:

• Kyodo News International (c) 2004
• Tokyo District Court
• Unfair Competition Prevention Law
• Heisei Dellen Co.