Honda seeks damages over patent rights

JAKARTA (JP): Japanese automotive giant Honda Motor Co. Ltd. said on Tuesday it was seeking damages from local importers of Chinese motorcycles for infringing its patents by selling products equipped with patented devices without its permission.

Katsuro Suzuki, who is the company's senior managing director and chief operating officer for Asia and Oceania, said some of the importers of Chinese motorcycles had admitted to importing motorcycles equipped with Honda's patented decompression device, thus infringing Honda patents.

"We have yet to decide on how much damages we should seek from the importers for the losses resulting from these infringements. We're still studying the matter," Suzuki told The Jakarta Post.

Three importers of Chinese motorcycles published an announcement in several local papers, including the Post, over the weekend saying that they had reached an "amicable settlement" with Honda over the alleged patent infringements.

They did not, however, specify the terms of the so-called amicable settlement.

"Chinese motorcycle producers in China have ensured that imports in the future will use different engines and will not infringe Honda's decompression device patent," the importers said in a joint statement.

The three importers are PT Global Lestari Motorindo, PT Vivamas Multindo Indusco, and PT International Image Inovator, which respectively import Beijing, Vivamas Qingqi, and Hokaido motorcycles.

Suzuki signaled, however, that there were still some importers who had yet to admit to infringing Honda patents.

Honda launched a campaign to crack down on infringements of its patents last year following a wave of Chinese motorcycle imports. The Chinese motorcycles are much cheaper than their Japanese counterparts.

Several months ago, Honda warned all importers against buying Chinese motorbikes which had been illegally equipped with its patented devices.

About 57 makes of Chinese motorcycle have entered the market, since the government eased regulations on the importation of completely built-up motorcycles in late 1999.

"We are hoping to settle the infringement cases as soon as possible," Suzuki said following the launching of Honda engine distributor PT Honda Lawadinata Power Products.

Honda Lawadinatana Power Products is a new joint venture between Honda Motor Co. Ltd. and local firm PT Kodrat Adhimulia, with Honda holding a 49 percent stake and Kodrat the remaining 51 percent.

The new company will become the sole distributor for Honda- made water pumps, power generators, and electric lawn mowers.

The new company's president Johnson Putra Lawadinata said his company projected sales of around 100,000 units this year. (03)