TVS threatens Bajaj Auto with libel suit over tech patent

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TVS threatens Bajaj Auto with libel suit over tech patent

A day after Bajaj Auto hit out at TVS for alleged patent infringement, TVS has threatened to sue them for libel. But Bajaj is sticking to its stand, reports CNBC-TV18.

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A day after Bajaj Auto hit out at TVS for alleged patent infringement, TVS has threatened to sue them for libel. But Bajaj is sticking to its stand, reports CNBC-TV18.

The battle over sparkplugs is getting bigger. TVS Motors has threatened to sue Bajaj Auto for Rs 250 crore, for what it claims are "malicious allegations made with the motive to damage our reputation".

In fact, TVS has asked its lawyers to put Bajaj Auto on notice. This doesn't seem to have changed Bajaj's stance. The company says that, "Bajaj believes the use of twin spark technology, christened Digital Twin spark-ignition, or DTSi, is worthy of intellectual protection."

Bajaj says it is preparing its legal defence on three counts: using the same technology for the same purpose (on a bike engine), using it for the same engine size and with the same construction. TVS says its flame based on its controlled combustion variable timing intelligent , or CCVTi, does not infringe Bajaj's patent and is asking for the patent to be revoked

Bajaj says TVS' requests for patent revocation suggest that TVS acknowledges Bajaj's DTSi patent. Bajaj says it has a strong case. In fact, the High Court in Sri Lanka upheld Bajaj's DTSi patent when Chinese manufacturer Taian Chiran machinery and its Sri Lankan distributor put out their version of the Bajaj Pulsar.

Bajaj was granted the DTSi patent for the Indian market in July 2005. It says it is also expecting approval of its international patent applications in various foreign countries, subsequent to its application dated October 30, 2003.

This battle is not just about technology, it is also about the future of the two-wheeler market. Bajaj hopes the dwindling 100 cc segment will give way to the 125 cc, a market TVS is also hoping to capture.

Bajaj Auto has said it is betting the company on its soon to be launched 125 cc XCD based on DTSi technology and so is TVS with its 125 cc flame. This segment accounts for 55% of all bikes sold in India. So, it is no wonder then that neither company is willing to take this lying down.