Easy Design

Toyota Lawsuit Settled For Patent Infringement

Under threat of U.S. imports of hybrids being blocked, Toyota has settled a long-running patent infringement suit. In 1994, a patent covering “high voltage method to power gas-electric hybrid cars” was filed away. Toyota has agreed to license the technology from the Paice business.

The patent at issue

The patent involves two motors giving torque to wheels. Originally developed by Alex Severinsky, who founded Paice, this patent was granted in 1994. Low current is used in hybrid vehicles with high voltage.

Economic arguments leveled

The International Trade Commission was the only reason Toyota had a case in this issue. The ITC has the right to block imports if patent violations are found, unless there are “health or public policy issues” with that limitation. Toyota was arguing that blocking Toyota imports would have created hundreds of millions of dollars of lost economic activity and numerous job losses.

Settling the suit

For six years Toyota has been in this suit against Paice. Toyota and Paice say what goes in Toyota cars is “equivalent to the Paice patent.” Toyota says that despite the fact that it may be alike, all of it was invented and developed by Toyota solely. If the litigation had not been settled in both Texas and U.S. appeals court, Toyota may have been blocked from importing hybrids into the United States. Settlement details are still hidden.

Ford licenses Paice technology

Ford, which is aiming to release both electric and hybrid autos, has licensed Paice’s technology. This licensing agreement does not affect Toyota or the lawsuit settlement, though it does give Ford tested technology for its hybrid cars. Paice patented technology will be used in the Fusion hybrid car, also as others.

Paint Pen Patent Infringement Illustration