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Legal Aspects of Business

QUIZ Assignment

Topic: Intellectual Property Rights - Patent

Vs.

Submitted to: Prof. Anshu Sharma

Submitted by B-53 Dipak Savaliya
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Index
1. Name of the case...................................................................................................................... 3
2. Parties Involved ....................................................................................................................... 3
A. Fore case 1. ....................................................................................................................... 3
B. Fore case 2. ....................................................................................................................... 3
3. Related Law ............................................................................................................................. 3
4. Facts of the case ....................................................................................................................... 3
5. Judgment Laid Down............................................................................................................... 5
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1. Name of the case - Bajaj Auto Limited Vs. TVS Motor Company Limited

2. Parties Involved
A. Fore case 1.
i Plaintiff - Bajaj Auto Limited
ii Defendant - TVS Motor Company Limited

B. Fore case 2.
iii Plaintiff TVS Motor Company Limited
iv Defendant - Bajaj Auto Limited

3. Related Law
a. The Indian Patents Act, 1970 (Amended in 2005) - Section 3(d)

4. Facts of the case

On July 7, 2005, Bajaj was granted a patent with a priority date of July 16, 2002. The title of
the patent application was An improved Internal Combustion Engine working on four stroke
principle. The invention was called DTS-i Technology, and it related to the use of twin
spark plugs located diametrically opposite to each other in a small displacement engine with
the cylinder bore diameter ranging between 45 mm to 70 mm. Per Bajaj, this placement of the
spark plugs enabled a better control over the ignition timing and lesser time was taken for the
flame to travel during the process of combustion. The novelty also lay in the use of a sleeve to
protect the spark plug, which prevented exposure of the plugs to the lubricating oil.

In 2003, Bajaj launched Pulsar, a motorcycle that employed the DTS-i Technology in
respect of which the patent was then pending. In the first eight months of that financial year
itself, Bajaj manufactured and marketed 814,393 two-wheelers with the DTS-i Technology
out of a total of 1,501,241 two wheelers were sold by it, which amounted to 54.25% of its total
sales. 1 Indian Patent No. 195904 Issue XII | January 2010 Disclaimer This bulletin is for
information purposes and should not be construed as legal advice. PSA In 2007, TVS
announced the launch of a 125 cc motorcycle under the trademark Flame which was to be
powered by lean burn internal combustion engine of bore size 54.5 mm with a twin spark plug
configuration just like Bajaj.
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TVS also stated that on September 1 & 3, 2007, Bajaj had issued certain groundless threats to
dissuade TVS from launching Flame. Hence, in October 2007, TVS filed a suit under
section 105 & 106 of the Act in the Madras High Court, alleging that the statements made
by Bajaj on September 1 & 3, 2007 constituted groundless threats, and sought the intervention
of the court to restrain Bajaj from interfering with the launch of Flame. Further, TVS also
filed an application for the revocation of Bajajs patent before the Indian Patents Appellate
Board under section 64 of the India Patents Act, 1970 (Act). Upon the announcement by
TVS, Bajaj filed a suit for permanent injunction under section 108 of the Act in the Madras
High Court to restrain TVS from using the internal combustion technology patented by Bajaj
and from employing the same in marketing 2/3 wheelers, including TVSs proposed 125-cc
Flame motorcycle.

PLAINTIFF SIDE

According to plaintiff, they were invented a unique technology of using two spark plugs
for efficient burning of lean air fuel mixture in a small bore engine in the size between
45mm and 70mm.

In small-bore non-racing engines, the need to have more than one spark plus was never
thought necessary if there were no advantages of a dual spark plug. The invention was on
the application of twin plugs in small-bore engine in a specific engine running condition
of lean burn, to derive positive merits of improved fuel efficiency and emission
characteristics.

Use of two sparks plugs was applicable in the large bore size. In case of the small-bore,
engines were not lean burn.

The novelty of the invention lies on the use of lean burn engines.

The industrial applicability lies as it helped the automobile industry in cutting short the
fuel consumption.

DEFENDANT RESPONSE

The argument forwarded by the respondents, following were the grounds used by the
respondents to challenge the patent of the applicants

1. The concept of two spark plugs being prior art- produced various published papers

2. US patent no: 5320075 titled Internal Combustion Engine with Dual Ignition for a lean
burn
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3. Takeaway Cylinder heads and Honda Bros, NC 25E. Kawasaki KZ 1000 SI have
configured of two valves per cylinder with twin plugs.

4. The third valve arrangement of the respondent is protected by patent licensed to it by

AVL List GMBL: According to the respondent, the spark plugs in the engine in its
vehicle FLAME are arranged in a different way in comparison to what is claimed by
plaintiffs applicants patent.

5. Judgment Laid Down

The learned single judge, after considering the submissions of both parties and considering
various facets of the case concluded.
The court relied upon the principles in granting interlocutory injunction, including any patent
action.
The principles are:
The plaintiff must prove prima facie case that the patent is valid and infringed;
Balance of convenience is in favor of plaintiff; and
Irreparable loss that may be caused to plaintiff by not granting an order of injunction.

FINAL JUDGEMENT:
1. Bajaj was given patent right as it was manufacturing the product for more than 5 years.
Thus, the patent was valid.
2. TVS has been allowed to sell its bike with Twin Spark Plugs, with a court Receiver being
appointed to maintain books of profit.
3. In its interim order, the Supreme Court reiterated that in matters relating to trademarks,
copyright and patents, the provision of the Code of Civil Procedure, which mandate that
civil disputed, should be heard on a day-to-day basis without any adjournments, except in
circumstances beyond the control of the parties. It also directed that the final judgment
should be given normally within four months from the date of the filing of the suit. The
Supreme Court directed that the timeline stipulated above be adhered to punctually and
faithfully by all courts and tribunals in the country.