Flash Electronics, a major electric and electronic auto components manufacturer filed a lawsuit against Royal Enfield. As per the suit, Royal Enfield has violated the patent on “regulator rectifier device and method for regulating an output voltage of the same”. The patent was awarded to Flash Electronics by United States Patent and Trademark Office (USPTO).
The patent was awarded on 20th February 2018 after Flash’s R&D department made the breakthrough invention in 2014. Since then, Flash electronics have been a key manufacturer and supplier of the component – in India and overseas.
The component ensures smooth and efficient conversion of AC (Alternating Current) produced by engines to DC (Direct Current). This, in turn, charges the batteries, powers the headlights, lights up the instrument panel thus driving the motorcycle’s electrical systems. Flash Electronics also has patents in other European countries. They include Germany, Spain, France, Italy, the United Kingdom, the Netherlands, Sweden, Austria, Switzerland, and Turkey.
Statement from Flash Electronics
Sanjeev Vasdev, Founder and MD, Flash Electronics India Pvt Ltd said “We have been trusted suppliers to leading auto manufacturers across India and overseas and it’s unfortunate to have to deal with such an unexpected and unprecedented act on the part of Royal Enfield, one of the most prestigious names in the automotive sector.”
He also added, “This incident is highly objectionable and has dented the credibility of the brand, at least with us as a partner”. The penalty for Royal Enfield could run into millions of dollars. Reason – it is not only based on “per unit” basis but also on the cost of running the lawsuits.
Vasudev also commented that the companies tried to solve the issue amicably. Top officials from Royal Enfield and Flash Electronics met in October 2018. But Royal Enfield did not provide them with a response. If the verdict goes against Royal Enfield, they will have to recall the products and take a huge financial hit in compensating the loss and the lawsuit.
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