Toyota faces potential US import ban on hybrids

In a strange piece of news, Toyota Motor Corp, largest producer of hybrid vehicles, faces a potential U.S. import ban on Prius and other hybrid models as trade officials begin a patent-infringement investigation.

The U.S. International Trade Commission will start a probe into a claim by closely held Paice LLC that some Toyota vehicles infringe a patent for a way of supplying torque, or force, to a car’s wheels from both an electric motor and internal combustion engine, the agency said yesterday.

The ITC has the power to block imports of products that infringe U.S. patents, potentially disrupting Toyota’s sales in the world’s biggest auto market, having a knock on effect across the markets for manufacturors, retailers, car hire and van hire agencies, and corporate use. Paice won a 2005 civil patent suit against Toyota, which was upheld on appeal. In that case, a federal judge rejected Paice’s request to halt sales of the cars and instead ordered royalty payments.

The earlier Paice verdict related to the Prius, hybrid Highlander and Lexus RX400h sport-utility vehicles. The new ITC complaint claims the hybrid Camry, third-generation Prius, Lexus HS250h sedan and Lexus RX450h SUV infringe the same patent.

Since 2000, when Toyota introduced the Prius in the U.S., the Toyota City, Japan-based company has sold more than 1.1 million hybrids in the market, including more than 750,000 Prius cars.