SC allows TVS to roll out Flame 125cc motor bike

 In a reprieve to the TVS Motor, the Supreme Court on Wednesday allowed it to roll out its twin spark plugs technology Flame 125cc motor bike subject to certain conditions. 



The court expressing serious concern over pendency of the patent row between Bajaj Auto and TVS Motor over the technology used in the Madras high court since Dec 2007, directed all courts and tribunals across the country to decide the suits relating to patents, trademarks and copyrights punctually and faithfully within four months from date of filing of the suit. 



“The respondent (TVS Motor) shall be entitled to sell its product (Flame 125 cc )but it shall maintain an accurate records/accounts of its all India and export sales”, said a bench comprising Justice Markandey Katju and Justice AK Ganguly. 



The court said, “We are appointing a Receiver to whom the records of such sale shall be furnished every fortnight by the respondent and the same shall be signed and authenticated by a responsible officer of the respondent. A copy of the same shall be given to the appellant (Bajaj Auto )also”. 



The apex court requested the Chief Justice of the Madras High Court to nominate a Receiver in the matter to whom the sale rec-ords/accounts will be submitted by the TVS Motor. The Receiver will verify the sale records/accounts and submit his report to the Madras high court bench where the patent row between Bajaj and TVS is pending, said bench. 



As a natural sequel, the bench said, “the interim orders of this Court (SC) dated 08th June, 2009 and 31st August, 2009 are vacated”. 



On June 8, the apex court had allowed TVS Motor to manufacture Flame 125-cc bike sporting twin-spark plugs but said, "finished prod-uct (motorcycle) from its warehouse" can not roll out on an undertak-ing given by the Chennai based company in this regard. The same order was continued on Aug 31 when the apex court takes up the mat-ter for further hearing. 



Bajaj Auto which rolled out its XCD 125 motor bike had came to the apex court alleging that twin spark plugs technology used in Flame motorbike impinges upon its patent right. 



The apex court expressing serious concern over pendency of Bajaj- TVS patent row since Dec 2007 asked the single judge bench of the high court to fast track the case and decide the issue on or before Nov 30. 



“We direct the respondent-defendant (TVS Motor) to file written statement in the suit, if not already filed, on or before the last date for closing of the Madras High Court for Dussehra holidays. We would re-quest the single judge who is trying the suit to commence the hearing of the suit on the re-opening of the Madras High Court after Dussehra holidays and then carry it on a day to day basis. No adjournment whatsoever ordinarily will be granted and the suit shall be finally dis-posed of on or before 30th November, 2009”, said apex court. 



The bench further said, “we are unhappy that the matter has been pending in the high court at the interlocutory stage for such a long time as the suit was filed in December, 2007 and yet even written statement has not been filed”. 



The apex court further said, “experience has shown that in our coun-try, suits relating to the matters of patents, trademarks and copyrights are pending for years and years and litigation is mainly fought be-tween the parties about the temporary injunction.This is a very unsat-isfactory state of affairs”. 



It asked all courts and tribunals across the country to decide the issues relating to trademarks, copyrights and patents within four months from the date of filing of the suit. 



Bajaj has filed a patent infringement suit in the high court seeking di-rection to put on hold the manufacture, sale and distribution of TVS Flame. Consequently, TVS Motor also approached the High court by filing a suit under Indian Patents Act to counter Bajaj’s claims. 



The single judge of the high court in its interim order had restrained TVS from booking, distributing or selling its 125 cc motorbike Flame. It was overturned by the Division bench giving a green signal to the TVS Flame motorbike. Against it, Bajaj had came to the apex court.