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Toyota Builds a Patent Thicket For Hybrid Cars

Lorien_the_first_one sends along a WSJ piece reporting on how Toyota is hoping to benefit from new Obama Administration regulations for automobiles here in the US. "Since it started developing the gas-electric Prius more than a decade ago, Toyota has kept its attorneys just as busy as its engineers, meticulously filing 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."

24 of 307 comments (clear)

  1. Kudos to them by Anonymous+Cowdog · · Score: 5, Insightful

    This is exactly what patents *should* be used for: secure rewards for innovators who take the risk of bringing out a future-leading product.

    The US auto companies who had a product vision apparently inspired by Country & Western music unfortunately passed on the opportunity, and now they'll have to pay.

    1. Re:Kudos to them by beckett · · Score: 5, Insightful

      i agree that American Auto should suck it. The timing around the toyota patents sucks though.

      Feet dragging patents may be great for the bottom line and act as some sort of poetic justice, but the patents retard widespread deployment of hybrid vehicles and chokes further development of the technology. by the time some patents would expire (e.g. 20 years), our window to affect climate change may have past.

      at least Toyota banks mad cash on their prius in the mean time.

    2. Re:Kudos to them by fishbowl · · Score: 5, Insightful

      "This is exactly what patents *should* be used for: secure rewards for innovators who take the risk of bringing out a future-leading product."

      Using them as a weapon against your competition who *laughed at you* all the way into *bankruptcy* is just a bonus, a coup de grace.

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    3. Re:Kudos to them by clarkkent09 · · Score: 4, Insightful

      the patents retard widespread deployment of hybrid vehicles and chokes further development of the technology

      That's debatable. Would Toyota have risked millions (billions?) on developing the technology in the first place if they weren't expecting a big reward if they succeeded. Without patents they would be the big losers now and those who dragged their feet and played it "safe" would be the big winners as they would copy the successful technology without having to risk a dime on developing it. I'm not saying that the current situation is ideal but when criticizing the patents, it's worth remembering the pros as well as the cons.

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    4. Re:Kudos to them by Arguendo · · Score: 4, Interesting

      at least Toyota banks mad cash on their prius in the mean time.

      Actually, that's sort of the problem for Toyota. They got hit with a patent judgment over their hybrid vehicles in eastern Texas a couple of years ago. The plaintiff was awarded nearly $100 a vehicle as an on-going royalty (which is about 17% of Toyota's relatively slim profit margin).

      So I agree. Kudos to Toyota for playing the game like it should be played. They got hit pretty hard and they needed to fight fire with fire. Good for them.

  2. Obvious... by Nogami_Saeko · · Score: 4, Informative

    I believe this has been their plan from day one. While the Prius and their other hybrids have been good for the company both in terms of corporate image and moving vehicles, patent licensing is where the money is.

    By cornering the market on hybrid system patents (many of which would also apply to hydrogen and other alternative-energy vehicles), they stand to make a lot more money than just selling their own cars. The Ford Escape hybrid is a perfect example, as Ford licensed Toyota's 1st generation hybrid drive system rather than developing their own (Toyota had already moved on to the newer hybrid system by that point in time).

    Disclaimer: I own a Prius

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    1. Re:Obvious... by Pyrion · · Score: 5, Informative

      Nope, they developed their own system, and found it to be functionally similar to Toyota's, so rather than embroil themselves in lawsuits with Toyota, they cross-licensed.

      Disclaimer: I own an Escape Hybrid.

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      "There is much pleasure to be gained from useless knowledge." - Bertrand Russell.
    2. Re:Obvious... by timeOday · · Score: 4, Informative
      I disagree, simply because Toyota is easily the #1 leader in hybrid auto sales, and is making lots of money from them all by itself. Here's a cite for those assertions and lots more about how the Japanese and Toyota in particular are about to reap a windfall for their forward thinking engineering. Choice quote:

      "Toyota has already reached the break-even point on sales of its hybrids; by contrast, its foreign competitors, like GM, still have years of bleeding red ink ahead of them. Toyota says the parts in its next line of hybrids, due for release next year, will cost about half the current bunch, allowing it to drop prices and raise profits. While the company is estimated to have lost about $10,000 on each car produced when the line was launched back in 1997, "the new Prius is going to be hugely profitable," says Nikko's Matsushima, bringing in thousands of dollars per car.

      Meanwhile, as of just six weeks ago, you have GM clinging to the old line: "as long as gas is cheap, Americans will want big, powerful vehicles. He compared [Obama's] policy to trying to fight obesity by having the government require that clothing only be made in small sizes." This after GM already went broke pursuing that strategy, while Toyota is poised to make a killing on their small fuel-efficient cars!

    3. Re:Obvious... by timeOday · · Score: 4, Interesting

      Toyota had and has as many big SUVs as any of the other automakers. Go check out their lineup.

      Sure. The question is, why did Toyota invest its profits from the last generation of technology to stay relevant in a changing world, whereas US car companies almost completely failed to do so?

      there are as many parts in a small car as a big SUV while the margin on the SUV is much more fulfilling.

      You mean "were." SUV's are getting dumped in fire sales. This resulted in the bankruptcy of GM, which only accelerated the trend. When the world economy starts to recover and oil prices surge again, will the traditionalists finally realize that the 90s are not coming back?

      Also, good luck with that battery pack - you must not have any laptops, flashlights, or toys to know how frequently batteries fail and have to be replaced.

      Now there's the GM mindset in a nutshell: "if toy companies haven't already solved the problem, we're sure not going to try!"

  3. Maybe this is the good kind of patent? by Anonymous Coward · · Score: 5, Interesting

    If patents are supposedly to encourage new technological developments, without knowing the details, it sounds like this might actually be a responsible use. After all, it gives Toyota a financial incentive to come up with more efficient cars. And the competition is actually licensing it. Unlike in the farmaceutical industry, where companies patent publicly-funded findings from NIH research so that they can be the only ones profiting from it. Or software, where people patent stuff to be able to sue their competitors out of a product space.

  4. Re:Prior art? by Pyrion · · Score: 4, Informative

    Nope. Diesel-electric locomotives use the diesel engines to power electric generators that then power individual electric motors at each wheel. The diesel engines are not directly connected to the wheels. The closest car analogue is the Chevy Volt.

    Hybrid-electric vehicles, meanwhile, are basically just regular ICE vehicles that share a common driveshaft with an electric motor. They can operate entirely on electric, entirely on the ICE, or combine the two.

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  5. Toyota's goal: to protect it's hard work... by Maxwell · · Score: 5, Insightful

    So it's a fact that Toyota's goal is to prevent any one else from making hybrids without licensing?

    Or maybe their goal is to protect their hard earned IP that they spent ten years working on while the rest of the world laughed at them?

    Good work , Toyota. you deserve those patents.

    1. Re:Toyota's goal: to protect it's hard work... by fermion · · Score: 5, Insightful

      Exactly, those that have worked on alternatively powered cars have a portfolio that will allow them to produce such cars. Those who have not are going to be left behind. This is right and proper. The companies include GM and Chrysler. Though it was probably ok to bail out these companies to assist semi-skilled semi-educated employees who would have otherwise been left with little hope of gainful employment, we do have to admit that the technical and management expertise seems so antiquated that there seems little hope that they will be able to compete. And don't complain about the expensive pay to workers. That is why they existed, to allow the semi-skilled high school graduate to enter the middle class. It did not prevent them from better funding appropriate research. A year ago the volt would have been a lifesaver. Now, who is going to buy a car from a company that may not be able to back it up?

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    2. Re:Toyota's goal: to protect it's hard work... by Anonymous Coward · · Score: 4, Interesting

      The Atkinson cycle engine technology in the Prius is based on the engine invented by Atkinson to avoid Otto's patents on the internal combustion engine. The idea of the patent is to protect the inventor. A side effect of that is to spur creativity in others to develop alternatives that don't violate the patents. That doesn't mean that no one else can make a hybrid without paying Toyota, it means that they can avoid Toyota's patents by inventing a different hybrid technology. I haven't heard of Honda paying Toyota for the hybrid tech they put in the Civic and other hybrid models.

      American researchers in universities did a lot of R&D on hybrids back in the '60s - it's time for the American auto companies to continue that.

      BTW - my understanding is that Ford didn't pay for Toyota's technology because it was easier than inventing their own. Rather, they invented their own hybrid tech but it was not sufficiently different from Toyota's in the end and they had to pay as a result.

  6. it's no secret.... by gandhi_2 · · Score: 4, Interesting

    the prius ad's gush about how the '09 model accounts for a thousand patents alone. my '06 prius said the same stuff. these patents are a source of pride for them.

  7. Re:Prior art? by MBCook · · Score: 4, Informative

    Those are series hybrids, which is how the Chevy Volt will work (when the gas engine is engaged). The Prius is a series hybrid as well (it's got a neat but relatively complicated dual electric motor pseudo-CVT system). Other cars, such as the Honda Insight (the old one, don't know about the new) was a parallel hybrid, where the electric motor provided additional torque, but couldn't run the car alone.

    Yeah, it's similar. There are some differences (trains don't generally have to deal with stop-and-go traffic, etc) but the idea isn't too far off.

    I remember reading in Forbes years ago that there was a car company (Ford?) who wanted to make a hybrid. They developed their own system and it performed much worse than the Prius (the first gen in the US). That, combined with the fact their system was so similar to Toyota's they were afraid of lawsuits, led them to license the Toyota Hybrid System (THS), which was later named the Hybrid Synergy Drive (HSD), since the Fords of the world wouldn't want their cars being powered by a Toyota Hybrid System.

    It's a bit of a mess, but at least there are some hybrid cars. As other companies do more of this stuff (like the Volt, the Fusion if it doesn't use the HSD, etc) it will get to the point no one will be able to produce a car without violating patents, so they'll just cross-license everything and things will be the same as they are now.

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  8. Re:Prior art? by Pyrion · · Score: 4, Interesting

    Yes, it was Ford, and it was functionally similar enough to HSD that upon close inspection, it might as well have been HSD. They licensed the HSD from Toyota while implementing their own design, the licensing done entirely for legal reasons, while they themselves licensed some of their diesel tech to Toyota in exchange. As the article points out, no money changed hands.

    Implementation-wise, what you've got is an independent traction motor and a generator that's slaved to the ICE. The generator's engaged when the battery is at low SOC, which you perceive as the engine then starts struggling to both propel the vehicle and charge the battery at the same time. The generator only acts as a motor in the act of starting the ICE. The independent traction motor handles both propulsion and regenerative braking.

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    "There is much pleasure to be gained from useless knowledge." - Bertrand Russell.
  9. Ford does not license Hybrid tech from Toyota by Anonymous Coward · · Score: 5, Informative

    This is a common misconception, but Ford does not license their hybrid technology from Toyota. Related post at Autoblog where they explain: http://www.autoblog.com/2009/07/05/editorial-attention-i-wall-street-journal-i-ford-does-b-n/

  10. Re:Prior art? by AaronW · · Score: 5, Informative

    You have the series and parallel confused. A series car typically has the electric motor inline with the engine to provide boost. This is how the original Honda Insight and hybrid Civic work. A parallel hybrid like Toyota's Prius and the Ford Escape can run on any combination of electric and gasoline. It uses a planetary gear assembly with the gasoline engine driving the planets. The sun gear goes to a generator/alternator (that can also be a motor) and the outer ring goes to the wheels and another electric motor. The CVT is basically just how it shunts power between the two motors. Mechanically it's fairly simple. If the gasoline engine dies it can use the electric motors to power itself. If an electric motor dies the car won't move.

    http://en.wikipedia.org/wiki/Hybrid_Synergy_Drive

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  11. June 1994 -- Le Mans and Chrysler's hybrid by thule · · Score: 4, Interesting

    If you think Japanese companies were the only ones working on hybrids, take a look at this article from June 1994:

    Formula Hybrid at Le Mans

    The neat idea behind Chrysler's design is that the turbine must be de-coupled from the drive train. The electric engine is the thing that is moving the car. This way the turbine can run at the most efficient RPM.

    The fact is that American car companies built cars that could actually make a profit on. Those vehicles were SUV's.

  12. The purpose of patents is to prevent progress by symbolset · · Score: 4, Insightful

    It's a bit of a mess, but at least there are some hybrid cars. As other companies do more of this stuff (like the Volt, the Fusion if it doesn't use the HSD, etc) it will get to the point no one will be able to produce a car without violating patents, so they'll just cross-license everything and things will be the same as they are now.

    The purpose of patents is to prevent progress. It's no longer to permit an inventor to the exclusive use of his art, and perhaps it's never been. There will never be a mass market electric car because these competing companies would rather prevent the electric car than share the market that destroys the internal combustion engine with another carmaker.

    Unless we do away with patents. Then it's a race to market with the cleverest implementation of the newest technology you can get, because that's what sells, and every popular feature becomes common (commons?) in a very short time, requiring car makers to make continuous improvement in order to stay in business.

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    1. Re:The purpose of patents is to prevent progress by mattack2 · · Score: 4, Insightful

      I am not trolling, but I think an argument can be made (and has been made in many other slashdot threads) that patents (can) do exactly the opposite - advance progress, in the slightly longer term.

      While they arguably can 'prevent' progress in the very short term for someone who doesn't want to license the patent to make a related invention/device, for something that's expensive and/or time-consuming to develop, there is no incentive if someone else can come along and steal the idea immediately. At that point, only the very rich or very altruistic will make inventions.

      I am not saying that the ONLY reason people make inventions is to get rich.. but the possibility of that happening is IMHO a reason someone goes beyond just pondering a new idea into developing it further (and/or at least further enough so that someone besides the inventor can use).

  13. US auto makers blew it by mid 2001 by Locutus · · Score: 5, Insightful

    They had been working half-assed on hybrids since 1993 and were more than happy to give all that up to take cash from the US government to show million dollar hydrogen prototype cars and trucks. Can you say dumb? Unfortunately, the US government is allowing them to continue operating and sticking US citizens with the bill. IMO, any of those three which couldn't continue operating should have been parted out and the remains crushed like GM did with the EV1. What a waste of money and it is their own fault Toyota is going to stomp on them with patent licensing costs as they should. After all, Toyota was the one who had to endure about 8 years of bashing by the US press and US auto makers for doing hybrid systems. They even had to endure a law suite by Mobile/Texaco when Toyota and Panasonic built prismatic NiMH batteries the oil company said were outside of the NiMH patent licenses which Mobile/Texaco purchased from GM. The large NiMH batteries used in the Rav4 EV had to be discontinued but at a cost of millions of dollars, they were allowed to continue making and using the prismatic design used in the Prius battery packs. Toyota deserves to be rewarded for what they've done with and for hybrid system designs.
     

    LoB
     

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  14. Re:The Solution is Obvious by MightyMartian · · Score: 4, Interesting

    I'm all for patent reform, but this seems to me to be a classic case of the appropriate use of patents. The parent is just a moron. Toyota put a helluva lot of money and time into its hybrid technology, why shouldn't it reap the benefits of it, whether through the sale of its own hybrids or by licensing the technology?

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