Toyota Builds Thicket of Patents Around Hybrid to Block Competitors

DON'T MISS: Compare Toyota Prius With Other Hybrids
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Washington DC July 1,2009; The AIADA newsletter reported that the Obama administration's tough new fuel-efficiency standards could pose problems for some car makers, but Toyota is hoping to benefit.

The Wall Street Journal reports that the company is betting the rules will give an advantage to its expanding lineup of hybrid vehicles, and it also aims to boost revenue by licensing to other car makers the patents that protect its fuel-saving technologies.

Since it started developing the gas-electric Prius more than a decade ago, Toyota has meticulously filed for patents on more than 2,000 systems and components for its best-selling hybrid. Its third-generation Prius, which hit showrooms in May, accounts for about half of those patents alone.

Toyota's goal: to make it difficult for other auto makers to develop their own hybrids without seeking licensing from Toyota, as Ford Motor Co. already did to make its Escape hybrid and Nissan Motor Co. has for its Altima hybrid. Whether Toyota's strategy will pay off is unclear.

While the Prius has won a strong following among environmental-minded consumers, it will face stiffer competition to win mass-market appeal. Click here for a chart demonstrating Prius sales since 2002. To read more about the WSJ story about Toyota's efforts to gain the upper hand in the hybrid car market, click here.