Tuesday, July 15, 2008

Bajaj sets sights on Royal Enfield for patent infringement - July 15, 2008

Eicher group company Royal Enfield might find itself caught in a courtroom drama in the near future, as its new bike is being questioned by Bajaj Auto over possible patent infringement. Yes, you guessed it right it is twin spark plugs yet again leading to another patent war brewing in the beleaguered two-wheeler space. Bajaj Auto has said it will take a closer look at the new Thunderbird TwinSpark. Bajaj holds a patent on twin spark technology and the bike maker has already dragged TVS Motor to court over a similar battle over the TVS Flame a few months ago.

The future of Royal Enfield depends on it, said Siddhartha Lal, MD & CEO, Eicher Motors. That is the importance that Royal Enfield places on its UCE or Unit Construction Engine on the new Thunderbird TwinSpark. RE says that its engine does not infringe on Bajaj''s patent since that patent is just for bikes between 75 and 250 cc while the displacement on the new Thunderbird is 350 cc. The company also feels that since TVS flame is a 125 cc bike the same rules don''t apply in this case. The TVS - Bajaj battle over the twin spark plug technology is still far from over with rulings pending in the High Courts of Chennai, Mumbai for both the patent and defamation suits respectively.

While the Royal Enfield management is adamant that their bike is not contentious any legal issues could not have come at a worse time. The company plans to use this engine technology on its entire lineup as other bikes like the Electra and Bullet also go under the scalpel and is also rolling out a capacity expansion to facilitate this at its Chennai plant.

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