ITC judge backs Toyota in hybrid patent fight

By Peter Kaplan

WASHINGTON (Reuters) - A U.S. administrative judge sided with Toyota Motor Corp. (7203.T), concluding that its hybrid models did not infringe a patent held by a small U.S. company, the International Trade Commission said on Wednesday.

Administrative Law Judge Paul Luckern said the Prius and Highlander, and other Toyota hybrids, do not infringe a patent held by Florida-based Solomon Technologies Inc. SOLM.OB, as Solomon had alleged.

Luckern's findings are subject to review by the full commission and could ultimately be appealed in federal court.

Solomon CEO Gary Brandt issued a statement saying company officials were disappointed and "will appeal the case aggressively."

Solomon Technologies, which makes electric power drive systems, filed a complaint with the panel last year saying the hybrid transmission in the vehicles infringed its patent related to motor and transmission systems.

If Solomon prevailed, Japan's top automaker could be banned from importing the systems and the Prius and Highlander hybrid models that they power.

In 2006, Toyota sold 191,742 hybrids in the United States, up from 146,560 in 2005, according to figures provided by the company. The 2006 sales include nearly 107,000 Prius hatchbacks, more than 31,000 hybrid Highlander sport utility vehicles, plus hybrid versions of the Toyota Camry, the Lexus RX and Lexus GS.

"When it comes to technological advances that it has pioneered, Toyota defends itself unremittingly," Toyota spokesman Xavier Dominicis said after Luckern's ruling.

Solomon also filed a patent infringement suit against Toyota in federal court in Florida in September 2005. That case was put on hold by the court pending the outcome of the International Trade Commission complaint.