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http://en.wikipedia.org/wiki/Cobasys
Patent dispute with Panasonic EV Energy
Panasonic EV Energy (PEVE), a joint venture between Matsushita and Toyota begun in 1996, pioneered several advances in large-format NiMH batteries suitable for electric vehicles.
PEVE supplied higher capacity (28Ah-95Ah) NiMH batteries for use in Toyota, Honda, and Ford battery electric vehicles (BEVs) that began production in 1997.[32] PEVE's lower capacity batteries powered the hybrid electric vehicle (HEV) Toyota Prius, which was introduced in Japan in 1997, and sold 18,000 units in its first year of production, as well as the first Honda Insight and Civic hybrid models.[33] BEV production by major automakers ceased in the early 2000s, with most leased BEV vehicles crushed by their manufacturers, and replacement batteries unavailable for remaining vehicles.
A 2001 patent infringement lawsuit brought by ECD Ovonics and Ovonic Battery Company, Inc. against Matsushita, Toyota, and PEVE was settled in July 2004. Settlement terms called for cross-licensing between parties of current and future NiMH-related patents filed through December 31, 2014. The terms prevented Matushita, Toyota, and PEVE from selling certain NiMH batteries for transportation applications in North America until the second half of 2007, and commercial quantities of certain NiMH batteries in North America until the second half of 2010. Additionally, Ovonic Battery Co. and ECD Ovonics received a $10 million patent license fee, Cobasys received a $20 million patent license fee, $16 million of which was earmarked to reimburse legal expenses, and Cobasys would receive royalties on certain batteries sold by Matushita/PEVE in North America.[34]
Licensing terms were expanded in 2005, with PEVE granted further license to sell NiMH batteries for certain transportation applications in North America, in exchange for royalties paid to Cobasys through 2014.[35]
[edit] Current Business
According to SEC filings, ECD Ovonics and Cobasys hold 125 US patents related to NiMH battery technology. 13 of the patents, considered particularly important, are due to expire by 2014. [36]
Cobasys and A123Systems announced a partnership in 2007 to develop, manufacture, sell and service a lithium ion batteries for automotive applications. A123Systems will provide their proprietary nanophosphate lithium ion technology and manufacture the batteries, while Cobasys will act as the tier one supplier to the automotive industry, providing extensive development and integration services.[37]
Cobasys is currently contracted to provide NiMH battery systems for the GM's Saturn Vue Green Line SUV, GM's Saturn Aura Green Line sedan, and GM's Chevrolet Malibu Hybrid Sedan.[38]
In March, 2007, Cobasys announced that they were exploring strategic alternatives to growth, engaging the services of financial advisors from UBS Investment Bank and Goldman, Sachs & Co.[39]
[edit] Criticisms
Main article: Patent encumbrance of large automotive NiMH batteries
Large-format NiMH batteries were commercially viable and ready for mass production, but Chevron and other oil-related interests suppressed the technology to forestall the introduction of plug-in hybrids.[40]
In her book, Plug-in Hybrids: The Cars that Will Recharge America
, published in February 2007, Sherry Boschert argues that large-format NiMH batteries are commercially viable but that Cobasys refuses to sell or license them to small companies or individuals. Boschert concludes that "it's possible that Cobasys (Chevron) is squelching all access to large NiMH batteries through its control of patent licenses in order to remove a competitor to gasoline. Or it's possible that Cobasys simply wants the market for itself and is waiting for a major automaker to start producing plug-in hybrids or electric vehicles." [41]
In an interview with the Economist, Stan Ovshinsky stated, "I think we at ECD we made a mistake of having a joint venture with an oil company, frankly speaking. And I think it’s not a good idea to go into business with somebody whose strategies would put you out of business, rather than building the business.[42]" In a later interview, however, when asked, "So it’s your opinion that Cobasys is preventing other people from making it for that reason?", he responded "Cobasys is not preventing anybody. Cobasys just needs an infusion of cash.".[43]
In October 2007, International Acquisitions Services, Inc., Innovative Transportation Systems AG and Neville Chamberlain filed suit against Cobasys and its parents for refusing to fill a large, previously agreed-upon order for large-format NiMH batteries to be used in the electric Innovan. [44]