In an article published in the Financial Post on Tuesday, June 14, 2016, Kristine Owram reported on Florida U.S. District Judge Beth Bloom, who ordered BRP (Bombardier Recreational Products), the maker of Ski-Doos and Sea-Doos, to pay Arctic Cat $46 million for patent infringement.
We felt this judgement was well worth commenting on as Intellectual Property (IP) is of particular importance for two of The Howard Group’s clients and is a key reason why we are invested in both companies, being Clean Seed (CSX.V) and FLYHT Aerospace (FLY.V).
When we first introduced Clean Seed in July 2014, the theme of the commentary was a belief that what would determine the company’s ultimate value was the IP portfolio, which has also grown over the past two years.
If we are correct, the IP will be THE reason for a major farm equipment manufacturer to take a serious look at Clean Seed. The company has incorporated multiple technologies into its CX-6 Smart Seeder that allow a field to be “painted” on a square foot basis with the simultaneous and optimum mixture of seed, nutrients and fertilizer. Very recently, the first CX-6 SMART Seeders were delivered to Rocky Mountain Dealerships (TSX – RME).
To read The Howard Group’s introduction to Clean Seed, click here
In the Arctic Cat case, the jury found that BRP willfully infringed on two patents related to a safer steering system for personal watercraft and therefore awarded Arctic Cat initial damages of US$15 million. However, because the infringement was found to be willful, the judge tripled the damages owing.
The article quoted Arctic Cat lawyer, Nicholas Boabel of law firm Hagens Berman, “Judge Bloom’s final judgement in this case is not only a major victory for our client, Arctic Cat, but a testament to the importance of upholding IP law and punishing wilful patent infringement.”
It’s expected that BRP will appeal.
To view the full Financial Post article, please click here.
