TVS to sue Bajaj for Rs250 crore damages; rolls out 7 new models, launches three 3-wheeler variants

Mumbai: TVS Motor Company, India''s third largest two-wheeler manufacturer, has threatened to file a suit claiming damages of Rs250 crore against Bajaj Auto if the latter does not withdraw its allegations that the company infringed upon its IP rights.

"TVS Motor is surprised at the wild and irresponsible allegations made by Bajaj Auto accusing TVS Motor Company of breaching their patent rights. The accusation is a malicious attempt to tarnish the fair name of a corporate that belongs to TVS group, which has consistently maintained the highest standards of ethics in business," the company said in a statement.

That the allegation of Bajaj Auto is ridiculous can be established by their own admission that the invention in issue, namely the application of twin spark plug is a known technology extensively in use all over the world for several decades, and therefore in patent law a known prior art, TVS pointed out.

Bajaj, however, claims the patent not for the use of twin-spark plug technology per se but for the use of the two spark plug in a two-valve IC engine with a detachably fixed sleeve.

The company said an application for revocation has already been filed based on settled case law on the subject against the patent. In any event, the use of twin-spark plug technology by TVS Motor does not infringe the above patent against which revocation proceedings are initiated.

In the circumstances and in view of the malicious allegation made with the motive to damage our reputation, TVS Motor Company has been advised to initiate action for libel against Bajaj Auto.

"TVS Motor Company, therefore, has advised its lawyers to put Bajaj Auto on notice that unless the malicious allegations are withdrawn and regrets expressed to file a suit for damages of Rs 250 crore," the statement added.

This action does not preclude TVS Motor from initiating other action as the law may permit, including criminal action against officials of Bajaj Auto who used libellous language against TVS Motor.

TVS Motor Company, meanwhile, rolled out as many as seven products from its Hosur plant, in line with the company''s commitment for this fiscal.

The seven products include the much awaited 3-wheeler in 3 variants, an Electric Scooter, an all new 110cc StaR City, a completely new 125cc motorcycle called FLAME and a new Apache EFI.

These simultaneous roll-outs are a tribute to the engineering skill of the R&D department and the TVS workforce making it the first time that any two-wheeler company has attempted successful multiple rollouts on a single day, the company said.

The new offerings are targeted at different segments of the two and three wheeler customers with emphasis on superior technology, styling and engine capabilities, the company said in a statement.

TVS also rolled out a complete range of 3-wheelers operating on eco-friendly fuels LPG and CNG (factory fitted) in the passenger segment with an estimated industry size of 3.6 lakhs / year (domestic and exports).

The company will manufacture these vehicles in 2- stroke, petrol, CNG and LPG versions at its green field modern facility at Hosur, which has a capacity of 100,000 units per year.