Bajaj threatens TVS with 'maximum damage'

The battle between Bajaj Auto and TVS Motor is getting hotter with the Pune-based two-wheeler major warning that 'it will safeguard its interest' and at the same time 'inflict maximum damage upon the offender', who has violated its intellectual property right on DTSi technology (digital twin spark-ignition) for small automotive engines.

In a strong counter attack on TVS, which had on Sunday threatened to sue Bajaj Auto if it did not withdraw its allegations, Bajaj Auto in a press release said, "Bajaj has been anxious that failing domestic manufacturers may adopt similar dubious methods in an act of desperation."

The Pune-based company pointed out that the Chinese manufacturer Taian Chiran Machinery Co and its Sri Lankan distributor were recently instructed by a Sri Lankan court to withdraw their copy of Bajaj Pulsar with DTSi technology from the market.

TVS said it would file a suit against Bajaj Auto for Rs 250 crore (Rs 2.5 billion) if the latter did not withdraw its allegations. The bone of contention has been Bajaj's patented engine which, they allege, would be used for TVS's soon-to-be-launched bike Flame.

S Sridhar, CEO, 2-wheelers, Bajaj Auto, said, "All our future products are developed around the DTSi technology. We cannot let anybody have it just like that."

In a statement on Monday, Bajaj stated its belief that the use of twin-spark technology, known as Bajaj DTSi, for small automotive engines was worthy of intellectual protection. Giving details on its patent, Bajaj pointed out that it had applied for a patent for the Indian market on July 16, 2002 and was granted an approval on July 7, 2005 via patent number 195904.

If any applications existed for revocation of this patent, the details were not known to Bajaj. Similarly, it was also expecting an approval of its international patent applications in various foreign countries subsequent to its application PCTN03/000348 dated October 30, 2003.

The company advisory wing and its lawyers would take the necessary decision towards combating the counter suit proposed to be filed by TVS. "We are waiting for TVS to take steps before acting on anything right now. We will wait and watch if TVS defers its launch for the moment," Sridhar further added.

TVS Motor said that twin-spark plugs technology was a widely used one. It further explained that while Bajaj used the technology with two valves, TVS made use of three valves. It has already filed an application for revocation, on the basis of settled law on the subject.

On the possibility of Bajaj agreeing to share the technology with TVS following a royalty payout by TVS, Sridhar said, "There is no question of that...it is our technology and we won't sell it to anyone."

TVS Motors' Flame was due for launch in October, according to a recent announcement made by the company. The bike has been at the centre of the controversy.