Small-time companies battle might of Toyota
BY NEIL MCDONALD | 30th Mar 2006
In Germany, automotive technology company Antonov plc is suing Toyota for hybrid transmission patent infringement after Toyota Japan filed a suit challenging the validity of one of Antonov’s Japanese patents covering hybrids.
The move parallels charges by a small Florida company that Toyota hybrid technology infringes on one of its patents.
As a result of the Florida claim, the United States International Trade Commission has agreed to open an investigation on behalf of Solomon Technologies Inc, of Tarpon Springs, Florida.
The company alleges in a federal US lawsuit that hybrid technology in the Prius and Highlander – which is not sold here – hybrid vehicles infringes on a Solomon patent.
Meanwhile, Antonov claims its Japanese patent is a direct counterpart to its European patent, the one it alleges Toyota has infringed.
Antonov management believes Toyota has taken a hard-line view with the issue in Japan and is seeking to force it to negotiate a settlement under a threat of significant legal costs through the Japanese legal system.
"We believe that Toyota has both infringed our patents as well as licensing this technology to other manufacturers," Antonov chief executive John Moore said in a statement last week. "We are still prepared to be reasonable and to co-operate with Toyota on realistic terms.
"However, Toyota must be made aware that its recent strategy will not intimidate Antonov in its defence of its patents." Solomons Technologies provides propulsion systems for marine applications and motors for land vehicles and machinery. The Solomon propulsion system also regenerates electricity, according to a company statement.
President Peter DeVecchis Jr said the investigation was an important next step in the company’s continuing prosecution of the infringement by Toyota.
"While the ITC cannot assess damages against an infringer, it can issue an exclusion order prohibiting the importation of infringing technology," he said. "We will continue our efforts to protect our intellectual property to the fullest extent possible." According to Solomon’s complaint, inventor Jonathan Edwards got a patent in 1991 for a "dual-input, infinite-speed integral motor and transmission device" and assigned the patent to Town Creek Industries Inc.
Town Creek and Toyota held discussions about the patent but never reached an agreement, the company claims. Solomon subsequently acquired Town Creek and claims to now own the patent for the "dual input, infinite speed integral motor".
An administrative law judge will hold a hearing on the claim and issue a determination, which is subject to ITC review.
The ITC has the authority to block imports of products that it finds infringe on US patents.
Toyota could be prohibited from importing the hybrid system into the US, which could effectively mean the end of Prius and Highlander exports to the US.
Last year it sold 110,000 Priuses and more than 18,000 Highlanders in the US.