TVS Motor, Bajaj Auto settle decade-old dispute over patent for spark plugs

TVS Motor Company and Bajaj Auto have settled a decade-old dispute related to patent rights for spark plugs.

The companies said they entered into a settlement agreement on Thursday to amicably settle the decade-old dispute related to alleged infringement of Bajaj's patent for digital twin spark plug ignition technology.

The patent by Bajaj Auto was related to improvement in the combustion characteristics of a four-stroke internal-combustion engine and the dispute occurred after allegations were raised that TVS Motor's 125-CC bike Flame infringed the patent.

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”.

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