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Toyota Hybrids Blocked From U.S. Due to Patent Issues?

 
2,511 views Sep 5, 2009

2010 Toyota Prius side view

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With sales of Toyota hybrids booming in its home country and elsewhere across the globe, Toyota leads the competition in the hybrid market.  Seemingly every hybrid model developed by the company fares well including the newly released Lexus HS 250h.  So what could hold Toyota back in this hybrid race?  Patent infringements could.  Depending on the judgment by U.S. courts, Toyota's imports of certain hybrid models could theoretically be entirely blocked from the U.S. shores.

Toyota faces patent infringement claims from a company called Paice LLC.  Paice filed an official complaint with the U.S. International Trade Commission on Thursday in Washington, D.C.  The fling, not immediately available for public viewing, claims that Toyota has infringed upon several of the patents awarded to Paice in regards to drive trains for hybrid vehicles.  Paice's filing seeks a complete ban on several Toyota models from out market including the Prius, Highlander Hybrid, Camry Hybrid, and several Lexus hybrid models.

Does Paice have a viable case?  Back in 2005, Paice won their initial case against Toyota claiming that the Prius, Highlander and Lexus RX400h used Paice inventions related to drive trains. The next trial is set to begin in a federal court in  Marshall, Texas in October.  This trial claims that the Camry hybrid infringes on the same patents discussed above.  An additional case also looms ahead in Marshall claiming that both the Highlander hybrid and all Lexus hybrid models infringe upon those same patents.

The trials listed above are minor, and Paice wants the case heard in Washington which is the reason for their newest filing in this nation's capital.  If the International Trade Commission agrees to hear the case of Paice LLC vs. Toyota Motor Corporation, the trial could begin immediately and last for up to 15 months.

If Paice wins, the commission has the power to entirely block all imports of the infringing models from our shores forever.  Toyota should be concerned as this could significantly impact hybrid vehicle sales in the U.S.  Though the case does seem to be a great example of the class David Vs. Goliath tale.  But Paice does have the previous victory over Toyota going for them and at least a fighting chance of winning the case if and only if the commission agrees to hear it.

Imagine Toyota with no hybrids to sell in the U.S. and an EV years away.  They would be in a heap of trouble hear if Paice manages to prove that the company stole their innovations.  We will have to wait and see if the commission will hear the case and whether or not Toyota hybrids will exit our country for a long time.

Source:  Detroit Free Press  Print Edition





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Comments (7)

  1. By jason M. Hendler Posted: 9/5/2009 5:21am PDT

    No big deal. Worst case, Toyota pays them a licensing fee. Best case, toyota buys the patent rights to prevent others from using it.
     
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  2. By anonymous Posted: 9/5/2009 2:38pm PDT

    "If Paice wins, the commission has the power to entirely block all imports of the infringing models from our shores forever."
    What about the hybrid models that are made here?
     
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  3. By aaaa Posted: 9/5/2009 4:15pm PDT

    i hope Paice lose
     
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  4. By Author Posted: 9/5/2009 4:27pm PDT

    I'm not entirely sure about hybrids made here. According to the source, the hybrids in question are all imported to our market. They may be wrong though. Paice has won against Toyota before. The most recent case awarded Paice a significant amount of money in a lower court. Who knows what will happen.
     
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  5. By VishNada Posted: 9/5/2009 7:20pm PDT

    Is this why Toyota and Lexus are nervously waiting on productions and the wait is almost 2-3 months of the exact models listed in the author's article. of course, Toyota and Lexus blame the low inventory on the present market conditions in Dallas TX area dealerships. But sure, they will strike a deal with Paice LLC Just like Apple dealing with QualCom, which gets $21 from Apple for every iPHONE sold! cheers
     
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  6. By Vic Kley Posted: 9/5/2009 10:51pm PDT

    Paice LLC has to prove their case in court against an opponent immensely wealthier and more influential. They need all the help they can get to level the playing field.
    People need to get it right Paice LLC and Qualcom CREATE the technology exploited by Apple and (likely) Toyota. Without them this we as a people and our economy as well as the rest of the world would be truly poorer.
    The fearful little people who cheer on the abuse of smll inventors by large corporations are the shameful ones. these narrow minded ones entirely ignorant of the miracle of invention should be banned, suppressed and legislated against not the inventors. unfortunately the government, Supreme court and congress are full of these ignoramuses.
     
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  7. By denis Posted: 9/6/2009 11:07am PDT

    i,m happy for toyota they get what they deserve for the way the treated there workers at the fremont plant in california , they gona have to pay billions for getting busted cheating ,Paice LLC allready won against toyota back in 2005 , patent infringment is no diferent then stealing somebady idea, some body hard work ,just like the chinese pirate anything and everything ,TOYOTA is going DOWN
     
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