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Toyota issues writ over hybrid patent
By Lauren Mills
02 April 2006
JAPANESE motor giant Toyota has stepped up hostilities in a battle with Aim-listed Antonov over the rights to the hybrid engine technology used in its Prius and Lexus models.
Toyota has issued a writ in Japan challenging one of Antonov’s automotive transmission patents in what appears to be an attempt to drive the British company out of business.
Antonov filed an action against Toyota a year ago in Germany, where legal costs are capped, claiming that the drive- lines of the second-generation Toyota Prius and the Lexus RX400h infringe its patents.
The German case is due to be heard in August. If the judge rules in Antonov’s favour, Toyota could face a bill of £100m (E145m, $178m) or more in royalties to the automotive technology developer and Antonov could force Toyota to stop production of Prius and Lexus hybrids.
Toyota has already sold around 250,000 hybrid vehicles, and expects to sell 300,000 units in 2006, reaching more than 1m a year by 2010. The Prius costs £17,795 upwards.
“If we win both cases, in theory we could stop Toyota selling cars in Germany and roll this out to other countries where we have a patent,” said John Moore, chief executive of Antonov.
Analysts reckon it could cost Antonov up to E300,000 to progress the case through the German courts. The company will need E1m more to defend itself in the Japanese courts.
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