Toyota lawyers arrived at the U.S. Supreme Court today and were denied an appeal to overturn a ruling originally upheld by a federal appeals court in Washington last year. The case involved a technology patent held by a company named Paice LLC, which contended that Toyota used the same microprocessor developed by the McLean, Virginia-based company on its hybrid vehicles that inputs torque information for both the gasoline-powered engine and the electric motor. The $4.3 million dollar award against Toyota will stand, and Toyota is required to pay royalties to the firm to the tune of $25 for every Prius, Highlander Hybrid and Lexus RX400h sold. Ouch. Sometimes the price of success is steep.
[Source: Detroit News]
New KITT Attack Mode revealed at Comic Con
London 2008: Honda OSM concept roadster says, "Cheerio!"
London 2008: Lotus unveils the Evora
2010 Chevy Camaro - Official Details and Images
2010 Chevy Camaro - LIVE from the reveal
In the Autoblog Garage: Aprilia RSV 1000 R
First Drive: Maserati Quattroporte S in Europe
First Drive: 2008 MINI Cooper S JCW
In the Autoblog Garage:2009 Nissan GT-R
North American Exclusive First Drive: Alfa MiTo
Reader Comments (Page 1 of 2)
tankd0g @ May 12th 2008 12:08PM
This seems to imply that Paice actually makes cars and not just patents?
naggs @ May 12th 2008 12:17PM
so there, i don't want to hear any more BS about how ford is basically just using old toyota hybrid tech. all companies share and use each others technologies, some just do it legally.
Chris @ May 12th 2008 12:19PM
Ford licensed 26 patents from Toyota. Toyota is also being sued in Germany over a CVT patent related to Hybrids.
Basically its just that the system is so convoluted and such that your never sure where your safe or if someone isn't sitting on a related patent or submarining one.
What is interesting is how low the fine is. This implies it wasn't done intentionally.
naggs @ May 12th 2008 12:28PM
well that is our legal system for you, in that grey area, there is no way to know if you are breaking the law until you get served papers.
Boudu @ May 12th 2008 1:34PM
There's a big difference between companies that actually develop technologies and companies that patent scam companies like Paice. Basically the company is a run by a bunch of patent lawyers sitting on patents waiting to sue companies, they have no intention of actually using technology.
you can look at their website, which basically just lists patnents they own. Also, proudly
http://www.paice.net/Patents/tabid/57/Default.aspx
Matt @ May 12th 2008 2:27PM
Paice LLC is a patent troll. Their business model is to file concepts without the intention of ever developing the idea and to negotiate some kind of licensing deal. Toyota decided it wasn't going to that game.
Take a look at Paice's patent filing. It has the sophistication of a highschool science project. http://patimg1.uspto.gov/.piw?docid=US007237634&SectionNum=1&IDKey=7E07DFC11908&HomeUrl=http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO1%2526Sect2=HITOFF%2526d=PALL%2526p=1%2526u=%25252Fnetahtml%25252FPTO%25252Fsrchnum.htm%2526r=1%2526f=G%2526l=50%2526s1=7237634.PN.%2526OS=PN/7237634%2526RS=PN/7237634
Guess what the founder of Paice is doing now. Al Severinsky is patent trolling the alternative fuel industry. I am sure one of his companies will be in the news again in a few years involved in another patent infringement lawsuit seeking royalties as compensation.
FYI, the first patent that I could find describing a hybrid vehicle as we know it today was first filed by Matsukata back in March 1970 patent number 3502165, "GAS-ELECTRIC DRIVEN VEHICLE WITH RETRACTABLE WHEELS"
Since 1970, a host of patents for gas-electric vehicle have been file. The majority of them originating from Japan. The development history of gas-electric (hybrid) is long and documented. It didn't happen overnite.
If Paice LLC, truly had a working hybrid drive system, there would have been a bidding war to buy the company or the technology by ANY of Toyota's competitors. That did not happen, because Paice LLC has developed nothing but vaporware. Very simply, the company is a patent troll that happen to strike it big this time.
If you think the business of patent trolls are good, then go ahead and celebrate. Its certainly seems like a easy way to make a buck, but not what I would call an honest way to earn profits.
UltraP13 @ May 12th 2008 12:20PM
The U.S. judicial system is seriously broken. If I were Toyota I'd pull the Prius out of the U.S. market. The US $ isn't worth much anyway.
pacman @ May 12th 2008 12:29PM
You are an idiot.
Drake @ May 12th 2008 12:23PM
Makes it cheap to pay the fine. Would have been worse if it was $25 in Canadian.
naggs @ May 12th 2008 12:29PM
so in protest for a $25 million fine, they should loose hundreds of millions by throwing a hissy fit...
good plan, i nominate this guy for CEO of toyota
pacman @ May 12th 2008 12:30PM
also considering the YEN is trading around ~100 to 1 you're argument is further made mute.
John P. @ May 12th 2008 1:37PM
Actually, intellectual property is ONE place where the US judicial system works many times. How would you feel if you invented something and watched others steal the design for financial gain while you sit in squaller eating ramen noodles?
Pete @ May 12th 2008 2:21PM
Pacman, you mean "moot"
Montana @ May 12th 2008 12:26PM
If they're so concerned about a whole $25/vehicle, up the price by $25. Consumers won't notice, and you won't lose any $...
Red @ May 12th 2008 12:26PM
Henrik Fisker built the car Toyota should have. I believe it's called the "Karma" or something? hehe
Seriously though, serves them right. They should've gone through the correct means to getting ahold of the technology. You can't circumvent the rules and you certainly can't get away with doing this in such a high profile product as the Prius.
On another note, I thought the Synergy Drive system was the same on all Toyota/Lexus vehicles? Why just charging royalties on the three or is it a different microprocessor system?
Justin @ May 12th 2008 1:36PM
JarJar, learn to actually respond properly to posts before calling some a retard.
PS: Your username sucks.
JarJar @ May 12th 2008 1:21PM
It's moot. Retard.
pacman @ May 12th 2008 12:31PM
Loonie is trading 1.0062 to 1 vs the Dollar. Woudl not have been that much worse making them pay in Canadian.
Brent @ May 12th 2008 12:35PM
That is what I hate about the US dollar being low. Too many Canadians crossing the border and tipping my girlfriend 5%, because they think servers get paid as high as they do in Canada. Morons.
Off topic, sorry. haha
Westside T.O. @ May 12th 2008 8:50PM
@Brent...
Right because Canadians really tip 5%. Moron. When service is good, the server gets 20% from me. Tell your girlfriend to work harder. That, or keep your ignorant comments off an AUTOMOTIVE blog.
(I'm Canadian, in case you haven't figured that out yet.)