Norco Prevails Against Motorvac Tech in Automotive Transmission Fluid Exchanger Patent Infringement Case

LOS ANGELES--Feb. 1, 20051, 2005--The patent law firm of Fulwider Patton Lee & Utecht has successfully enforced a patent that helped establish a broad market for transmission fluid exchanger devices. A jury in the Central District of California, Southern Division, returned a verdict January 14, 2005, finding that the manufacture and sale of certain transmission fluid exchange machines by Motorvac Technologies, Inc. willfully infringed U.S. Patent No. 5,370,160, owned by Norco Industries Inc. The jury also confirmed the validity of Norco's '160 patent, and awarded Norco a 20% royalty on Motorvac's infringing sales of $4.25 million. In addition to successfully enforcing the '160 patent, prior to trial, the Fulwider firm also succeeded in obtaining the dismissal of infringement claims brought by Motorvac against Norco.

In 1994, Norco established the broad commercial market for automatic transmission fluid exchange machines with the introduction of its ATF2000+, commercial embodiment of the '160 patent. These first generation machines manually balanced the flow rate of used fluid exiting the transmission system with new fluid entering it. Second generation machines would later perform this balancing function automatically.

At trial, Motorvac's invalidity defenses were either disposed of as a matter of law by the Court or by the unanimous verdict of the jury, thus firmly establishing the validity of the '160 patent. Also, the jury determined that Motorvac's infringement was willful and awarded royalties in the amount of $850,000, setting the stage for Norco to ask the Court to multiply the damages and award Norco its reasonable attorneys fees.

According to Norco's lead trial counsel, Vern Schooley, the verdict reflected the jury's insight and understanding of the issues: "Norco's victory was particularly satisfying given that, when the lawsuit started, Motorvac was alerted to the defenses on which Norco eventually prevailed and was given the opportunity to dispose of the case for a nominal payment."