Patent suit not good for US Prius imports

[harajuka]

Just saw this on autoblog:

Toyota Prius importation under threat due to U.S. patent trade case? — Autoblog

With every new vehicle introduced by Toyota powered by the automaker's proprietary Hybrid Synergy Drive comes a matching complaint filed by Paice LLC for patent infringement. In the latest case, Paice has filed a grievance with the U.S. International Trade Commission in Washington alleging that Toyota is violating a patent it holds for powertrains that feature both an internal combustion engine and an electric motor – better known as hybrids.

This isn't the first time these two companies have grappled over hybrid drivetrain patents. Back in 2005, Paice won an initial judgement against Toyota resulting in an order that the automaker to pay Paice monetary damages of $4.3 million, though the judge rejected a request to force Toyota to halt sales of hybrid vehicles in the U.S. at that time. Later, Toyota was ordered to pay royalties equal to a small percentage of every hybrid sold in the States.

This time, Paice is taking a slightly different tack, seeking to get importations of Toyota's super popular Prius hybrid (along with all the rest of the hybrids from Toyota and Lexus) stopped by U.S. Customs right at the docks. According to Bloomberg, it could take about 15 months for the ITC to investigate this case, so there doesn't seem to be any reason to rush out and storm your local Toyota or Lexus dealer for a new hybrid... yet.

[lamontcranston]

I read this, but I'm not worried because it does seem that the two parties have come to an agreement before. 18 months from now, if the investigation gets that far, perhaps the two parties can sit down and talk it out.

[Politburo]

It looks like Paice is trying to shake down Toyota for a larger royalty. They only get $25 per vehicle right now.

[DeanFL]

What about Honda, Ford, and other Hybrid manufacturers?

As long as my Prius isn't quarantined or taken into court as exhibit #1628, I'm OK with this. Sounds like a shakedown and a huge payday for corporate lawyers.

[ceric]

$4.5 millions is nothing to Toyota (actually much less than the legal fee).
However, this patent hits the most fundamental concept of HSD, Toyota must defend it vigorously.
Money is no issue here.
Injunction is not easy to get unless Paice can put up a large sum of money to convince the judge. We are talking about the money to compensate Toyota's potential loss if Paice lose the case eventually. That would be in hundreds of millions at least. I doubt Paice can put up that kind of money.

W/o the up front money put down, Paice will not likely to get the injunction.

[jim256]

They're not contesting to protect the technology, they're suing to make money, and with no Prius sales, RX 400h sales, etc., no money. Just tactics.

[jburns]

Originally Posted by ceric

W/o the up front money put down, Paice will not likely to get the injection.

Yeah, those drug dealers are strict.

[Salsawonder]

Originally Posted by DeanFL

What about Honda, Ford, and other Hybrid manufacturers?

As long as my Prius isn't quarantined or taken into court as exhibit #1628, I'm OK with this. Sounds like a shakedown and a huge payday for corporate lawyers.

We may have to arm ourselves and defend our right to keep our babies!!!

[PriusLewis]

It would be interesting to investigate the history of the patent. Toyota (and Ford) use the design thought up by TRW in 1970. I don't know if TRW patented it, or if the patent was kept up. I find it interesting that someone else basically infringed on TRW with their patent for any drivetrain that uses both a gasoline and electric motor.

You cannot patent a concept (such as trying to patent the idea of a hybrid drivetrain). All you can patent is a device or an application of a concept. So I would be surprised if this patent directly addresses the use of 3 inputs (1 gas and 2 electric) and 3 outputs (the 2 electric as generators, and one to power the vehicle) through a planetary transmission, which is exactly what TRW originally invented. If, in fact, the patent drawing shows an in-line design, if I were Toyota I'd for sure fight it (and the company should be going after Honda instead of Toyota).

[qbee42]

Our intellectual property laws are seriously messed up. The whole patent system needs an overhaul.

Tom