The war of words between Bajaj Auto Limited (BAL) and TVS Motor Co will now be played out in the court room. Replying to the Rs 250-crore defamation suit filed by TVS Motor Co in Bombay High Court earlier in the week, BAL on Saturday said it was ready to defend itself to protect its intellectual property in the ongoing patent row.
Already there is a battle waging between the two in the two- and three-wheeler market to garner larger share with volumes dropping. TVS, with a slew of announcements of product launches, is slated to take on competition.
The conflict started when TVS unveiled its new 125-cc bike, Flame, this August. BAL alleged that TVS had used the digital twin spark technology (DTS-i) patented by it in 2002. In reply, TVS said if the ?malicious and reckless remark? was not withdrawn, it would file a libel suit for Rs 250 crore.
TVS has also filed another suit in the Madras High Court. BAL sources say the company has received a notice from TVS Motor on the suit filed in the Madras Court, but has not been served any notice on the suit filed in the Bombay High Court.
According to Bajaj Auto (two wheeler) CEO S Sridhar, ?It appears that TVS Motor has filed a defamation suit against Bajaj Auto in the Mumbai High Court. Bajaj has not been served any notice in this regard. On receipt of the same, Bajaj Auto will be ready to defend itself against such action.? TVS has reportedly engaged New Delhi-based law firm Dua Associates for the suit.
?Bajaj continues to be extremely concerned about the possible infringement of this patent, will take all the necessary steps to protect it,? Sridhar added.
TVS is banking heavily on the launch of Flame, especially after witnessing a drop in sales for seven straight months, hit by fierce competition and high interest rates on loans. Bajaj Auto has pinned its hopes on its recently launched 125-cc bike XCD. Analysts expect it to be a blockbuster and help revive motorcycle sales and margins. Bajaj is said to be targeting monthly sales of 50,000 units of XCD by October 2007 itself.
?When launched, Flame is expected to eat into Bajaj?s market share of the fast-growing 125-cc segment and has the capability to dent its revival plans,? said a fund manager requesting anonymity.