VeloClub is CyclingTips’ membership program which brings us closer to our members, and connects likeminded cycling enthusiasts.
by Mark Zalewski
March 4, 2017
In today’s CyclingTips Daily News Digest: Yohann Gene wins fifth stage of La Tropicale Amissa Bongo, takes lead; From indoor superstar to cobbled spring races: Talking to Zwift Academy winner Leah Thorvilson; Valverde to miss Paris-Nice due to illness; Cancellara has Strade Bianche section named for him; Large quantities of corticosteroid triamcinolone ordered by Richard Freeman; Sagan says all or nothing with disc brakes; Virginia Commonwealth Classic race cancelled; Government support for Reading 120 race in question; SRAM-Fox Factory litigation costs mounting; Mysterious toilet plungers protecting cyclists; Video: Mavic #lesangjaune; Street Transformations – Manhattan’s Chrystie Street protected lane; Season X. Reflection.
Several lawsuits between SRAM and Fox Factory are making their way through courts in Illinois and California, with the costs associated mounting for each company. Fox Factory issued an update to investors this week that the litigation has cost the company $2.75 million (€2.6m) last year, with costs expected to continue to rise.
“The increase in operating expenses is primarily a result of investments to support growth in the business and $0.8 million of expense associated with the previously disclosed ongoing patent litigation activities involving a bike industry competitor,” the statement said. ” The Company remains confident in its position in these litigation matters.”
The suits originated over SRAM attempting to protect its ‘wide-narrow’ chainring patent in late 2015 against several companies. While the others settled or worked out licensing agreements with SRAM, Fox did not — specifically over its Race Face brand. It escalated when SRAM filed an additional trademark lawsuit over the engraving SRAM trademarks on its components to show compatibility.
In January of 2016 Fox filed suit against SRAM in California alleging patent infringement over some RockShox forks and rear shocks. It followed that with two more patent infringement suits over thru-axle technology. SRAM responded saying the suits were retaliatory.
Fox has filed re-examination requests with the U.S. Patent and Trademark Office over the X-Sync patents. If not settled it could be years before the various lawsuits make it to a jury trial.
Click through to read more at Bicycle Retailer.