Orbital sues Mercedes, Bosch over patents

Engine technology developer Orbital Corporation has filed court documents in the US against major car industry players Mercedes-Benz and Bosch over alleged patent infringements concerning its direct injection technology.

Orbital said it was seeking judgement that Mercedes and Bosch had infringed patents it already owned for its direct injection and combustion technology.

Chief executive Terry Stinson said patents for the company’s direct injection technology had been in the public domain for a long time.

“Direct injection was something we introduced with Mercury Marine in 1996, so companies like Mercedes and Ford all had arrangements with Orbital back in those days to disclose what it was we developed,” he said.

“Some of that direct injection technology was disclosed to potential customers like Mercury. Some signed up, some didn’t.

“So there are patents that we have filed on certain ways to make direct injection work and the efficiency of the engine, and all those patents are out in the public domain.” 

Mr Stinson said the company looked at who might be using some of its patents, on a systematic basis, and that’s how the infringement was disclosed.

Orbital is seeking compensatory damages and injunctive relief that would prevent Mercedes and Bosch from using the patented inventions.

As an alternative, the company said it would accept payments for a licence fee to use the inventions.

In the same statement, Orbital said it had secured financing to minimise the litigation funding risk to the company.

Mr Stinson was unable to comment on who provided the finance, or how much was provided.

Shares in Orbital were 6.9 per cent lower at 40 cents per share at the close of trade.