REPORT: Toyota Prius imports under threat from U.S. patent trade case?
2010 Toyota Prius – Click above for high-res image gallery
With every new vehicle introduced by Toyota that is 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 judgment against Toyota that resulted 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.
Gallery: 2010 Toyota Prius
[Source: Bloomberg]
Reader Comments (Page 1 of 1)
paulwesterberg 12:35PM (9/04/2009)
Sounds like Paice LLC is a patent troll that will never produce any actual products and makes money by abusing our flawed patent and legal system. They are a parasite that feeds off of legitimate companies.
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Dave R 2:11PM (9/04/2009)
My thoughts exactly. I hate patent trolls. Another reason why patent reform is required.
Chris M 8:11PM (9/04/2009)
Definitely a "patent troll", their patent is vaguely worded and concerned mating two electric motors through a planetary gear, not really a full hybrid system. They've never done any development work, never tried to sell it, didn't even try to market it to other auto makers. Considering that they'd already settled their earlier "patent infringement" case, I'm betting the court will simply throw out their "request" as the case had already been settled and royalties paid.
Patents are only good for 17 years, so this whole mess will be over and done with in, oh, about 4 years. Coincidentally, the Cobasys NiMH battery patents will be expiring soon, too!
gorr 1:00PM (9/04/2009)
I told you this week that toyota and other car manufacturers except nissan hates to sell battery cars, is it clear now or not ? This is what toyota tried to told you 2 years ago before chatters here in this site jumped in subsidized madness against hydrogen gas and praised limp, costly, innadapted, subsidized, own by chevron batteries.
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Ernie 3:09PM (9/04/2009)
While Paice LLC is clearly a patent troll company, you have to wonder why they're so adamant about *stopping* the import of Toyota hybrids. It's clearly not enough to just make money off a broken patent system.
If I were the US ITC, I would be asking questions like "who owns Paice LLC" and "what the hell are they really trying to do".
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SkiD666 6:16PM (9/04/2009)
Stopping importation is a means to screw over Toyota for even more money.
reseausl 4:20PM (9/04/2009)
If you google map Paice LLC address, you end up at a private home in Florida.
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Andrey 1:54AM (9/05/2009)
I have an IDEA. I will patent "Claiming of the patents", and will see who is going to win. Ohh, yea I can see some dollars coming my way.
stevejust 10:31PM (9/04/2009)
How could Paice "patent" the idea for a hybrid being a combination of an ICE and electric engine (the accuracy of which Chris M has already called into question) when one of the first cars Ferdinand Porsche ever made was a hybrid?
see e.g., http://www.autohistory.org/feature_6.html
I just can't see why Toyota would've ever fed the trolls in the first place.
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