Toyota settles patent dispute with hybrid technology maker Paice; terms not disclosed

Toyota settles patent dispute with technology firm

NEW YORK — Toyota Motor Corp. said Monday it has settled a years-long dispute with a U.S. company that had claimed the Japanese automaker used its technology without permission in its hybrids. The deal ends a squabble that had briefly threatened to block the Prius from being sold in the U.S.

Toyota and Paice LLC said they have settled their patent dispute and agreed to have all lawsuits between them dismissed. The terms were confidential, the companies said. No financial details were disclosed.

“After six years of litigation, we are pleased to reach a settlement with Toyota,” said Frances Keenan, chairman of the Paice board, in a statement.

Paice, based in Bonita Springs, Fla., had claimed that popular Toyota hybrids like the third-generation Prius and the Lexus HS250h contain technology that violated Paice’s patents for hybrid engines.

Paice had asked U.S. trade regulators to block the import of the vehicles to the U.S. A trial to settle the dispute with the International Trade Commission, the Washington, D.C.-based body that investigates claims of trade violations, had been scheduled to begin Monday.

Toyota and Paice say they have agreed that although Toyota’s hybrids contain technology equivalent to that made by Paice, Toyota developed its hybrid technology independently.

U.S.-listed shares of Toyota fell 43 cents to close at $71.18.