It's almost taken for granted that if you make a slick-looking motorcycle, there'll be a Chinese copycat variant coming down the line later. That's not such a problem if we're talking about Ducatis or MV Agustas, because the customer who buys the Chinese rip-off isn't shopping for premium Italian brands, and vice versa. But when your Chinese product is copied by another Chinese company and the hardware is almost identical, the buck stops, as Talaria Technology (Chongqing) Co., Ltd. found out.
Sur-Ron, which is technically known as Hangzhou Qiulong Technology Co., Ltd., and based in China, filed a suit against Talaria Technology (Chongqing) Co., Ltd. and Talaria Technology (Hong Kong) Co., Ltd regarding patent infringement. Now, according to The Pack, after a three-year legal battle, a jury in the U.S. District Court for the Western District of Texas (Austin Division) returned a unanimous verdict in favor of Sur-Ron.
The intellectual property in question is the core design patent for one of Sur-Ron's off-road electric motorcycles, the Light Bee. To convince the jury, the Hangzhou-based company provided extensive documentation, including original patent registrations, design manuscripts, and market development records. All the documentation was accepted by the jury and was surely crucial in leading the jury to deliver a unanimous verdict.
The federal jury awarded Sur-Ron $10 million in damages, but the decision means a lot more than a one-time financial payout. At a moment when Chinese brands are exploding onto the scene across the US and Europe, protecting intellectual property in the automotive space is more important than ever, especially when the hardware is simpler, and the motor character can be easily replicated.
“This case demonstrates that intellectual property protection has no borders,” a representative from Sur-Ron stated after the verdict was announced, before continuing, “Infringement is not a low-risk shortcut, and attempts to profit from copied designs will face serious legal consequences.” If you know the dramatic story between Sur-Ron and Talaria, you'll realize that this is more like revenge than a legal victory.
Senior members from Sur-Ron's sales and distribution departments went on to work at Talaria Technologies before the company produced the Talaria Sting, which was a direct competitor to the Light Bee. The employees held knowledge of Sur-Ron's designs and distribution channels, and the case alleged that they used their knowledge to develop competing products.
The ruling should help to ensure that competitors from China that distribute products globally, compete using their own ideas, rather than directly copying their competitors. That's not just good news for emerging powersport businesses, but for us as consumers due to a more competitive landscape.
