Mahindra-Owned Peugeot Infringed Bike Patent, Rs 12 Crore Penalty Imposed; Banned From Selling Bikes In These Nations

The courts in Paris and Milan have ruled against the sale of the popular Peugeot Metropolis three-wheeled maxi-scooter in France and Italy due to a patent violation.

The Indian-owned French Peugeot Motorcycles will not be able to perform any function and will be banned from importing, exporting, promoting, or advertising the Peugeot Metropolis scooter in Italy according to the court orders

Patent Suit Against Peugeot Scooters 

The control system that allows a three-wheeler to tilt like a standard two-wheeler is at the crux of the legal struggle between Italy’s Piaggio Group and Peugeot Motorcycles.

Basically, the patent is owned by the Piaggio Group.

Piaggio Group owns the patent for the aforementioned technology, which it uses on its Piaggio MP3 scooter.

And now the control system used by Peugeot Metropolis was determined to be infringing on Piaggio Group’s patent by both the Tribunal Judiciaire de Paris and the Tribunale de Milan.

Penalties Imposed By The Court

In addition to other penalties and charges regarding the ban, the court also imposed a fine of 1.5 million euros (Rs 12.95 crores).

According to the court, Indian-owned French Peugeot Motorcycles will not be able to perform any function and will be banned from importing, exporting, promoting, or advertising the Peugeot Metropolis scooter in Italy. 

A fine of 6,000 euros (almost INR 5.18 lakh) for every Metropolis sold 30 days after the announcement of the court orders. Also if it Fails to withdraw the contentious vehicles from the sale within 90 days, a further penalty of 10,000 euros (around INR 8.64 lakh) for every day of non-compliance will be implemented.

Peugeot Motorcycles Combat Strategy 

The ban on Peugeot Motorcycles will cost heavily as in France and Italy, mainly three-wheeled maxi-scooters are on-trend. 

There is no legal approach made by the company as of now.