A federal judge has ordered OFS International, LLC, (OFSi) to stop manufacturing and selling six connections which Tenaris alleged were based on confidential information and trade secrets that OFSi stole from Tenaris’s subsidiary, IPSCO Tubulars.
The order prohibits OFSi from developing new connections using Tenaris’s confidential information and requires OFSi to return or destroy all stolen information in its possession.
United States Magistrate Judge Christina Bryan signed the permanent injunction order earlier this week, which provides that OFSi is “PERMANENTLY ENJOINED from manufacturing, marketing, selling, offering for sale, licensing or providing threading services” for the six connections at issue in the lawsuit, including the BHT and BHT-S.
Tenaris acquired IPSCO in January 2020, and continued to pursue the litigation against OFSi to protect its acquired assets and defend against unfair competition.
“We are a company that innovates and invests heavily in the research and development of our quality products,” said Luca Zanotti, Tenaris US President. “We operate with high standards across the board and it’s imperative that we protect our technology, and the application of our know-how.”
In 2019 Tenaris invested $61M in research and development, and more than $392M during the last five years. It operates four R&D facilities worldwide, led by a team of 360 experts who continuously work to develop innovative solutions to enhance the safety, quality, performance and sustainability of its products.
“This really is a big deal,” explained Bracewell LLP commercial litigation partner Phillip L. Sampson, Jr., who was not involved in the case. “The remedies Tenaris obtained against the defendants are about as broad as you’ll see: permanent injunctive relief from a federal judge, the destruction of the misappropriated information, full audit rights, and even a monetary payment on top of all that equitable relief.”
“One of the more significant aspects of a settlement like this is the protection it provides to customers buying these types of products, since injunction orders like this help ensure that products in the market are legitimate and not tainted with misappropriated or stolen technology,” he added.
Tenaris was represented by Tynan Buthod of Baker Botts LLP.