BRP Wins Lawsuit Preventing Sale of Arctic Cat Snowmobiles in Canada
The Federal Court of Canada has issued a permanent injunction prohibiting the sale, use and distribution of Arctic Cat snowmobiles in Canada that infringe on BRP’s Canadian frame patent from the REV lineup.
In addition, Arctic Cat has been ordered to pay BRP a royalty of CAD $135 for every snowmobile that infringes on the frame patent since model year 2008.
The effective date of the permanent injection is set for July 6, 2020.
Arctic Cat responded, saying, “Arctic Cat Inc. respectfully disagrees with the court’s ruling. We will continue to provide service and support to our Canadian dealers and customers as we pursue further legal recourse in this matter, including appeals of the court’s decision and of any injunctions issued against the continued sale of our products in Canada. The ruling has no impact on sales through our U.S. dealers, distributors or retail outlets. We will have no further comment on this matter at this time.”
We’ll update with more details as they become available, but for now, see the press release from BRP below.
Update 2020/06/16: While neither Arctic Cat nor BRP has responded with clarification on exactly which model year Arctic Cat snowmobiles are impacted by the decision at this point in time, a Canadian Arctic Cat dealership staff member claims that only 2008-2014 model year snowmobiles are impacted by the decision, and that the sale of current models will not be affected. Update 2020/06/17: The information presented in the official court document refutes this claim.
Update 2020/06/17: The official statement from Yamaha Motor Canada:
“Bombardier Recreational Products (“BRP”) issued a press release, on Monday June 15th, 2020, detailing the outcome of a legal action stating Arctic Cat (“Arctic”) infringed on a BRP snowmobile frame patent.
The decision made by the Canadian Federal Court in this matter has no impact on Yamaha and our snowmobiles. The ruling does not affect our ability to sell any model year Yamaha branded snowmobiles in Canada, the USA or internationally.”
Update 2020/07/17: The official document from the Federal Court of Canada on the decision has been released, and it clarifies that all Arctic Cat models that infringe on the patent will be subject to injunction prohibiting the sale in Canada beginning 20 days from the date of judgment (June 15, 2020).
BRP WINS LAWSUIT AGAINST ARCTIC CAT IN CANADA
Valcourt, Quebec (June 15, 2020) – BRP (TSX: DOO; NASDAQ: DOOO) announced today that the Federal Court of Canada has rendered a decision favorable to BRP in a lawsuit launched in December 2011 against Arctic Cat, where BRP argued that Arctic Cat infringed certain of its patents related to BRP’s revolutionary Ski-Doo REV snowmobiles.
Snowmobile enthusiasts will remember the launch of the Ski-Doo REV in 2002, which completely revolutionized the rider experience with its aggressive, sporty forward positioning of the driver and strong, lightweight frame.
“I couldn’t be more pleased with the decision of the Federal Court of Canada”, said Martin Langelier, Senior Vice President, General Counsel & Public Affairs at BRP. “Innovation is part of our DNA and today our ingenuity, which makes our company and products unique, is recognized and protected against intellectual property violation. The REV platform was and is still a game-changer in the snowmobiling industry and to have it protected in Canada is an important win”, concluded Langelier.
The Federal Court of Canada issued a permanent injunction ordering Arctic Cat and its Canadian dealers to stop the sale, use and distribution of any snowmobile which would infringe BRP’s frame patent. It also ordered Arctic Cat to pay BRP a royalty of CA$135 per unit that infringes the frame patent since MY2008.
The effective date of the permanent injunction is set for July 6, 2020.