Paice Sues VW Over Hybrid Powertrains Patents

Paice LLC claims Volkswagen AG has infringed on its hybrid powertrain patents and seeks to permanently ban the German company from importing or selling hybrid vehicles in the American market.

The Baltimore (Md.)-based firm has petitioned the U.S. International Trade Commission for a permanent ban on Audi, Porsche and VW brand hybrids.

Paice claims its engineers spent more than 350 days in Germany between 2001 and 2004 discussing in detail with VW its hybrid technology and sharing its computer modeling and control algorithms. Paice says VW abruptly cancelled the collaboration and did not license the American company’s technology.

VW initially focused its powertrain strategy on “clean” diesels instead. Paice notes the company has shifted to hybrids in the wake of its diesel emission cheating scandal. Paice contends that VW is now using its key hybrid patents illegally.

Paice is joined in the lawsuit by Abell Foundation Inc., a Baltimore-based charitable group that co-owns patents involved. The pair has prevailed in similar lawsuits against Toyota and Hyundai-Kia. It also has been embroiled for more than two years in a patent infringement dispute with Ford Motor Co.