TVS files Rs 250 cr suit against Bajaj

Move follows allegations of patent infringement by Bajaj

MUMBAI: TVS Motor Company has filed a Rs 250 crore defamation suit against Bajaj Auto in the Bombay High Court.

This is in reaction to Bajaj’s allegation that TVS had infringed the latter’s patented DTSi (digital twin spark plug ignition) technology.

Shiraz Patodia of Dua Associates, the law firm which represents TVS Motor, confirmed on Thursday that the defamation suit has been filed earlier this week in the HC.

“The suit pertains to Bajaj Auto’s allegations regarding infringement of its patented engine technology by TVS Motor,” Patodia told DNA Money from her Delhi office.
“The total amount we are claiming as damages is Rs 250 crore,” she added. The suit will come up for hearing in due course.

Sparks literally flew when TVS Motor announced its intent to launch the 125cc Flame (due in December), which Bajaj implied was an infringement of its own twin spark technology.

The company was then gearing up to launch the 125cc XCD based on this technology, as is the case with its other bikes like the Pulsar and Discover.

Bajaj had stated in the past that it holds the global and Indian patents for the technology for small engines.

It also claims to have received necessary patent approvals in July 2005 for its Bajaj-DTSi technology.

The company maintained that the twin spark plug technology was being used by TVS for the same engine size in a bike engine and with the same construction.

TVS, in its turn, retorted that the Flame, a four-stroke, four-geared bike, was fitted with a three-valve engine working on the controlled combustion variable timing intelligent (CC-VTi) technology.

There were angry words exchanged through the media followed by what seemed like a cooling off period.

In fact, there were reports doing the rounds that this matter would die a quiet death but the move by TVS to file a petition suggests that more action could be in store.

The XCD and Flame are extremely critical to both companies from the market share point of view. It is in the volumes-driven executive segment where Hero Honda has a vice-like grip. Years ago, TVS had posed a challenge with the 110cc Victor but this was short-lived.

The XCD comes with a price tag of Rs 41,000 which is at par with Hero Honda’s Splendor.