Recently, Paice LLC filed a complaint with the U.S. International Trade Commission (“ITC”) claiming Toyota is infringing its patent. The ITC was set up to protect U.S. markets from unfair trade practices. To protect U.S. markets, the ITC has the power to order U.S. Customs and Border Patrol to block products that infringe on U.S. patents from entering the country. Paice’s complaint seeks to prevent Toyota from importing all hybrids. This includes all hybrids made by Toyota, including the best selling Prius, as well as any hybrid made by Toyota’s Lexus division.

Under ITC rules, Paice must show “that it has a market to protect.” Bloomberg.com: Toyota Patent Trade Case May Affect Hybrid Imports.  Paice does not make any products related to the patent; however, Paice does claim to have invested in vendors, suppliers, research and licensing. Currently, the ITC is looking at the standards that allow patent holders who don’t make products to file lawsuits.

This matter is not the first time that Paice and Toyota have fought over patent infringement. In 2005, Toyota was ordered to pay $4.3 million dollars to Paice for infringing on Paice’s patents related to drivetrains. The infringing products were the drivetrains of the hybrid Toyota Highlander and the Lexus RX400h.

A list of Paice’s patents relating to hybrid electric vehicles can be found at the following site: Paice’s Patents.

Image from: http://www.toyota.com/prius-hybrid/photo-gallery.html

Filed under: Trademark by davidi