INDIA BUSINESS WORLD - OCTOBER 21^st - NOVEMBER 15^th - 2007

TVS MOTOR SLAPS RS 250-CRORE DEFAMATION SUIT ON BAJAJ

TVS Motor has filed a defamation suit against Bajaj Auto in the Bombay High Court and a patent suit in the Madras High Court. With this, TVS has taken the lead to begin the legal war with its rival, Bajaj Auto. Earlier this week, TVS filed a Rs 250-crore defamation suit in the Bombay High Court against Bajaj Auto's allegation of infringement (by TVS) of intellectual property rights on technology that is used in most Bajaj bikes. TVS has also filed another suit under the Indian Patents Act in the Madras High Court to counter Bajaj's claims on patent violation or infringement by TVS.

Soon after TVS unveiled a range of new products on August 30, 2007, Bajaj had alleged that TVS had used its digital twin spark ignition technology ( DTS-i) in the latest models, including 125 cc bike Flame that was showcased by TVS on the occasion. In turn, TVS declared if the "malicious and reckless charge" was not withdrawn by Bajaj, it would file a libel suit for Rs 250 crore. TVS also said it will ensure, by appropriate legal means, that Bajaj does not interfere with the use of its in-house VTi technology on the basis of which TVS has already announced new launches commencing November. Now that TVS is preparing for the launches in November and December, it has filed the Rs 250 crore defamation suit in Mumbai High Court. When contacted, a senior TVS Motor official confirmed filing of the suit. "As of now, we do not know what will be the reaction from Bajaj and also when they will react," the official added. TVS has also filed another suit in Madras High Court to counter its rival's charge that TVS had copied its patented digital twin spark ignition technology in the 125 cc TVS flame slated to be launched in December. TVS's contention is that it is a "groundless threat".