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Triple Damages: Arctic Cat Takes $47 Million Bite Out of BRP


(6/14/2016)

Arctic Cat Tigershark Takes a $47 Million Bite Out of BRP

The hands of justice dealt a powerful blow to BRP today, as a U.S. Federal court judge awarded Arctic Cat triple damages in the patent-infringement lawsuit concerning personal watercraft.

What was a stinging $15.5 Million slap on BRP's corporate wrist is now a $47 Million (yes, I'm rounding up) bite out of its legs.

Ouch!

The release below indicates that the number of offending Sea-Doo watercraft was 151,790 units produced from 2009 through 2015. Dividing 46.7 million from that number, it equals just over $300 per watercraft.

I'm no expert on Sea-Doo watercraft or the intricacies of this lawsuit, but from what I can tell from perusing the interwebz and checking out their current 2016 products, I can't help but wonder if current and future Sea-Doo watercraft sales might also mean a cut for Arctic Cat?

Either way, $46.7 Million is a big number.

Anyway, below is the release from Businesswire:


Arctic Cat Awarded Triple Damages of $46.7 Million in Patent-Infringement Lawsuit Against Bombardier Recreational Products Inc. and BRP U.S. Inc.

Court rules that BRP willfully infringed Arctic Cat’s patents on safety technology

Arctic Cat Inc. announced that a federal court judge for the Southern District of Florida (Miami) awarded triple damages of $46.7 million USD in a patent-infringement suit filed by Arctic Cat against Bombardier Recreational Products Inc. and BRP U.S. Inc.

Initially, a jury awarded Arctic Cat just over $15 million USD on June 1, 2016, after unanimously finding that the defendants willfully infringed all asserted claims in two of Arctic Cat’s patents for an innovative off-throttle assisted steering technology. Arctic Cat’s technology is an important safety mechanism designed to prevent on-water collisions and accidents in personal watercraft (PWC). Today, the federal judge tripled the damages in the case, due to the makers of the Sea-Doo jet propulsion PWC committing willful infringement.

Christopher Metz, Arctic Cat’s president and chief executive officer, stated: “We are very pleased with today’s court ruling. The jury and federal court judge found that each of our patents in this case were valid, and agreed that BRP willfully infringed on our patents over the course of many years.”

The suit concerned a long-standing safety concern in the PWC industry: the inability to steer PWC once the throttle is released, which can occur in emergency situations, particularly for inexperienced riders. Arctic Cat developed a novel and effective off-throttle thrust mechanism to make PWC safer. The technology provides riders with temporary “steerable thrust” when the rider turns in off-throttle situations to help prevent fatalities and injuries from collisions. The United States Patent and Trademark Office awarded Arctic Cat patents for this off-throttle steering technology, entitled “Controlled Thrust Steering System for Watercraft."

At issue in the case were 151,790 model year 2009 through 2015 Sea-Doo personal watercraft. These models infringed 10 claims of Arctic Cat’s U.S. Patent Numbers 6,793,545 (“the ‘545 Patent”) and 6,568,969 (“the ‘969 Patent”).

Arctic Cat Tigershark Takes a $47 Million Bite Out of BRP

Arctic Cat Tigershark Takes a $47 Million Bite Out of BRP

These guys are PUMPED about the $47 million judgement.



Comments (9):

Eric says:
6/14/2016 10:43:00 PM

Awesome! W for Team Green!
artdcat says:
6/15/2016 7:27:00 AM

Don Shetler, aka Dontego Deluxe, Don Shetshark, Buckacuda or Dontona must be a happy man today. Serves BRP right for stealing Chuckwheat's idea.
Green blood says:
6/15/2016 11:06:00 AM

If you look at the patents the inventors were actually Bernier, Christopherson and Hazard. This is an awesome win for Arctic no matter what though.
bucky says:
6/15/2016 4:43:00 PM

Haha artdcat! Remember all the crap we took from those guys. Hey, BRP, how do you like the dish of karma!
Dream Weaver says:
6/15/2016 5:51:00 PM

$47M will that be enough cash to get the TS back into production... I still have my TS1100R and love it. The only way I'll ever sell is if TS come out with a new one.
Mike F says:
6/15/2016 8:40:00 PM

John....there may be some funny stories involved with a few of the previous posters. Just saying!
Tom White says:
6/16/2016 4:41:00 AM

That's great news! Is this final or can it still be appealed? Do they have to pay in a lump sum and how long do they have to pay it?

This may be a good time to ask for that raise!

artdcat says:
6/16/2016 5:29:00 AM

Bucky, yup, those arrogant bastards! Caused me to cut a box up into little pieces. Serves them right! Think we'll get a cut of it?? LOL!!
Tony says:
6/17/2016 6:09:00 PM

Lawyers win, judges win, insurance companies probably somehow win, BRP receives a minor scratch. Somehow we will loose. Maybe we win. Fun to watch I guess? Plus, who says things weren't super progressive in the 90's? That ad, just two good lookin dudes Tigersharking together!

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