Paice Licenses Hybrid Vehicle Patents to More Big Automakers

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In another big success for Paice, the hybrid vehicle technology company recently reached an agreement to license all of its tech to Hyundai and Kia.

This comes after a Baltimore jury found that the Korean automakers owed Paice $28.9 million in damages for infringing three patents relating to hybrid electric vehicles: U.S. Patent Nos. 7,237,634, 7,104,347, and 7,559,388.  All three patents are entitled “Hybrid vehicles” .

Paice has been an extremely successful non-practicing entity, using patent litigation in the federal courts and the U.S. International Trade Commission to bring major automakers to the negotiating table.

In 2010 the company settled major patent litigation with Toyota over the Prius and other hybrid models when the Japanese automaker licensed all of Paice’s patents.  Also that year, Paice and Ford became embroiled in patent litigation over hybrid vehicles.

According to the company’s press release about the Kia/Hyundai deal:

Paice has now licensed all or part of its hybrid vehicle technology portfolio to Toyota, Hyundai/Kia, and Ford – three of the world’s six largest automakers.  These three companies currently account for 90% of all hybrid vehicle sales in the United States.

Does all this litigation and licensing make Paice one of the oft-maligned “patent trolls?”  I think not.

The company should not be put in that category for a couple of reasons.  First, the founder of the company and inventor of the technology, Alex Severinsky, is a true innovator and pioneer, having invented much of Paice’s technology at least as early if not earlier than the large automakers.

Most of the patent assertion entities we think of as trolls are not innovators, but instead buy patents to assert in litigation and offer to license.

Second, Paice made genuine efforts at ex ante licensing.  That is, the company approached Toyota with offers to license its technology before any hybrid vehicles were ever sold.

This is in contrast to the business model of acquiring and asserting patents, with licensing offers, after the allegedly infringing products have been manufactured and racked up lots of sales (ex post licensing).

Paice’s success is not a surprise when one understands the power of its patents.  A 2010 report by a patent analytics firm called Ambercite analyzed 58,000 hybrid car patents and their interrelationships using network patent analysis methodology and found Paice’s portfolio to be the strongest, better than all major car manufacturers’ hybrid car patents.

Eric Lane Avatar

Eric Lane

Eric Lane, the founder and principal of Green Patent Law, is an intellectual property lawyer and registered U.S. patent attorney in New York and is a member of the bar in New York and California. Eric has more than two decades of experience working with wind, solar PV, CSP, biofuels, and geothermal, energy storage technologies, carbon capture and sequestration, medical devices, data communications, mechanical, chemical, internet and software.