“INTELLECTUAL 

PROPERTY RIGHTS”

BAJAJ AUTO LTD.

VS. TVS

MOTORS LTD.-

CASE STUDY

Bajaj Auto is a part of Bajaj Group. It was founded by Jamnalal Bajaj at Rajasthan in the 1930s

. Bajaj Auto makes and exports automobiles, scooters, motorcycles and auto rickshaws.

Bajaj Auto is the world's third-largest manufacturer of motorcycles and the second-largest in India.

Bajaj Auto came into existence on 29 November 1945 as M/s Bachraj Trading Corporation Private Limited.

. In 1959, it obtained a licence from the government of India to manufacture two- and three-wheelers and it went public in 1960.

About Bajaj motors ltd.

TVS is part of TVS Group, manufactures motorcycles, scooters, mopeds and auto rickshaws in India.

TVS was established by Thirukkurungudi Vengaram Sundaram Iyengar. He began with Madurai's first bus service in 1911 and founded T.V.Sundaram Iyengar and Sons Limited

The company set up a plant at Hosur in 1978 to manufacture mopeds as part of a new division.

Commercial production of motorcycles began in 1984.

TVS Motor Company Limited

What is DTS-i?

DTS-i technology is based on two Spark plugs. It delivers better fuel efficiency and lower emissions.

DTS-i Engine was later tuned to deliver exhilarating performance as in DTS-FI or exceptional mileage like in DTS-SI as claimed by Bajaj.

Background of the Case.  

Bajaj’s patent. Bajaj Auto Limited (the appellant) claimed that it was granted patent titled “An Improved Internal combustion engine working on four stroke principle” with a priority date of 16th July 2002. The patent was granted on 7th July,

2005.

patent A government authority or licence conferring a right or

title for a set period, especially the sole right to exclude others from making, using, or selling an invention.

Bajaj has claimed that TVS has used its digital twin spark ignition technology (DTSi) in recent TVS models including the recently launched 125 cc model Flame, that was rolled out from the Hosur plant on August 30.

TVS Motor said in the statement that the patent that Bajaj claims is not for the use of twin spark plug technology but for the use of the two spark plugs in a two-valve IC engine with a detachable fixed sleeve.

TVS earlier used VTi(Variable Timing Ignition) engine for its economic bike ‘centra’. Bajaj Auto claims that the TVS has used its digital twin spark ignition technology (DTSi) in recent TVS models including the 125 cc bike, Flame.

He said the company was convinced that there was a clear case of IPR violation by TVS on three counts and the company’s legal department was preparing to go to court at the earliest.

use of twin spark ignition for enhanced performance and better mileage.

Secondly, the size (of engine) is same construction of engine is also the same.

Features of the invention are:

Small displacement engine as reflected by a cylinder bore diameter between 45 mm and 70 mm.

Combustion of lean air fuel mixtures;Using a pair of spark plugs to ignite the air fuel mixture at a predetermined instant.  

The Patent Controversy.

The case involves the issues of patent infringement by the defendant and the damages for the same.

The case was filed before the Madras High Court in 2007.

The complaints in (Bajaj Auto Ltd), along with the state of Maharashtra alleged the defendants (T.V.S. Motor Company Ltd.) of infringement of the patents of the complaints, which concerns the invention of the technology of improved internal combustion engine.

preventing them from marketing, selling offering for sale or exporting 2/3 wheelers .

Appeal and Judgment.

The short term order was challenged before the Division Bench of the Madras High Court, where the appeal was allowed.

The appeal finally went before the honourable Supreme Court (Markandey Katju and Ashok Kumar Ganguly JJ.), through the Special Leave Petition.

In the matter before it, the Supreme Court criticized the pendency of the matters relating to the intellectual properties, even at interlocutory stage..

. The Court appointed a receiver for the same.

The Court also directed the learned single judge to decide the suit of permanent injunction and directed the Respondents to file written statement in the suit.

Judgment Delivered by the Court.

The learned single judge, after considering the submissions of both parties and considering various facets of the case came to the conclusion.

The court relied upon the principles in granting interlocutory injunction including any patent action.

The principles are: The complainant must prove prima facie case that the patent is

valid and invaded;

Balance of convenience is in favour of applicant; and Irreparable loss that may be caused to the appellant by not

granting an order of injunction.

The grant of injunction was in favour of the applicant. Thus, the interim injunction was granted in favour of the applicant.

Bajaj Auto Wins technologypatent case against TVS Motors

In the first of its kind case in India, Bajaj Auto has scored against rival TVS Motor in the technology patent case.

Madras HC dismissed an appeal by TVS to restrain Bajaj from interfering in the manufacturing and sale of the Flame 125.

The Madras High Court has granted injunction to Bajaj Auto in the on-going patent battle between the two companies.

In a double blow to TVS, the Madras High Court dismissed an appeal by TVS to restrain Bajaj from interfering in the manufacturing and sale of the Flame 125.

But the order of interim injunction restraining TVS Motor from manufacturing and selling Flame 125 or any other bike with the twin spark technology is the bigger blow.

THANK YOU…