| Make 'Flame' but don't sell it: SC to TVS | |
| BS Reporter / New Delhi June 9, 2009, 0:38 IST | |
The Supreme Court today allowed Chennai-headquartered TVS Motor Co to manufacture “Flame’, the 125 cc bike that has been caught in a patent dispute with Bajaj Auto Ltd since last year, but stipulated that the finished two-wheelers could not leave the company’s warehouse.
Both parties were also restrained from using the order for any purpose, including publicity.
The bench headed by Justice B Sudershan Reddy passed the order after hearing the pleas of TVS, which submitted that it might be allowed to manufacture the bike on condition that it would not leave its warehouse. This offer was agreed to by the judges and Bajaj.
Meanwhile, the court asked both parties to file their replies within two months and listed the case for further hearing in the first week of August.
Last year, Bajaj Auto took TVS to court, claiming TVS had infringed its so-called digital twin spark ignition (DTSi) technology for its Flame motorcycle.
SPARKING A CONTROVERSY
(A log book of the TVS-Bajaj dispute) |
| JUNE 2007 |
| * Bajaj accuses TVS Motors of patent infringement on the twin spark technology owned by the company, threatens legal action |
| * TVS accuses Bajaj of tarnishing TVS’ image asks for prompt apology, also threatens Bajaj with a Rs 250-crore defamation suit |
| SEPTEMBER 2007 |
| * TVS files the defamation suit against Bajaj in the Bombay High Court |
| * Bajaj files case against TVS at the Madras High Court |
| DECEMBER 2007 |
| * Madras High Court allows TVS to take orders for Flame |
| * TVS launches Flame |
| JANUARY 2008 |
| * Bajaj approaches the Supreme Court, which asks TVS to halt production of Flame. |
| MARCH 2008 |
| * TVS relaunches Flame without twin spark plugs |
| MAY 2009 |
| * Madras High Court allows TVS Motors to use the twin spark plug technology |
| JUNE 2009 |
| * Bajaj files special leave petition in the Supreme Court against the Madras High Court ruling |
The two companies have almost the same share of the 7.4 million two-wheeler market — Bajaj 15.26 per cent and TVS 14.69 per cent.
Later, a division bench of the Madras High Court lifted an interim stay order restraining TVS from accepting bookings and selling the Flame. The high court held that Bajaj had not made a good case of infringement of the patent by TVS.
Counsel for Bajaj argued today that the high court had relied on a blog by an IIT student to decide the controversial issue. He also contended that though the high court felt the questions involved were “triable”, it did not go into the balance of convenience on both sides.
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