The settlement also includes a defamation suit by TVS Motor
against Bajaj and other related proceedings filed by the two companies
against each other which were pending before the Madras High Court, Bombay High Court, the Intellectual Property Appellate Board (IPAB), Chennai, and courts in Sri Lanka and Mexico, according to TVS statement.
Both TVS Motor
and Bajaj Auto
have mutually agreed to withdraw the pending proceedings and release each other from all liabilities, claims, demands and actions in respect of the pending proceedings, the statement said.
None of them are required to pay any compensation or penalty to the other as part of the settlement. There will be no impact on financial position of the Company due to the Settlement Agreement, said the company.
It may be noted TVS filed a suit against Bajaj Auto Limited before the Madras High Court on grounds that Bajaj’s threats of infringement of its patent by TVS were groundless.
TVS also sought a declaratory judgment that its 125CC bike “Flame” did not infringe Bajaj’s patent. An interim relief was sought to restrain Bajaj from interfering with the manufacture and sale of “Flame”.