1978: Dr. Alex Severinsky, a Russian immigrant with a Ph.D. in electrical engineering, arrives in the United States.
1979: America enters a major oil shortage. Amazed at the long lines for gasoline, Dr. Severinsky conceives the idea of developing hybrid vehicles.
1986: Dr. Severinsky is admitted to a small company incubator at the University of Maryland that helps regional entrepreneurs build early-stage companies.
1991 - 1992: While serving as a lecturer at the University of Maryland’s A. James Clark School of Engineering, Dr. Severinsky begins to actively focus on his ideas for developing commercially successful hybrid vehicles.
1992: Dr. Severinsky forms Paice (Power Assisted Internal Combustion Engines) with support from the Maryland Technology Enterprise Institute (Mtech). Paice files its first of many patent applications relating to hybrid electric vehicles.
September 6, 1994: Paice is issued its first patent – U.S. Patent No. 5,343,970 (the ’970 patent) – for the Hyperdrive powertrain system. The patent involves technology that lets automakers provide torque to the wheels of a vehicle from the motor, the internal combustion engine, or both. It represented a groundbreaking technology that allowed hybrid vehicles to become commercially viable – and recently earned Dr. Severinsky the prestigious Thomas A. Edison Patent Award from the American Society for Mechanical Engineers
1998: Paice receives funding from The Abell Foundation, a non-profit organization that supports causes such as increasing energy efficiency and helps fund a number of charitable programs. Since its initial funding, Abell has invested more than $20 million to support the development of the Hyperdrive technology.
October 1999: Dr. Severinsky demonstrates a prototype of the Paice technology, proving that it effectively can reduce the gas consumption of a Cadillac Coup de Ville by nearly one-half, while retaining its driving performance. A key to the Paice technology is the use of voltages of five hundred volts or higher in hybrid vehicles. Paice’s prototype demonstrated that using high voltage was not only workable, it was essential to achieving good fuel economy while maintaining the driving performance that U.S. drivers demand. Following the development and prove-out of the prototype, Paice continues pursuing joint venture opportunities and licensing agreements with automakers.
December 6, 2001: Paice testifies before the U.S. Senate Commerce, Science, and Transportation Committee, along with GM, Ford, Toyota and other major automakers. The hearing focuses on automobile fuel economy and the federal Corporate Average Fuel Economy (CAFE) program. Paice COO and a former GM chief engineer Ted Louckes testifies that Paice’s Hyperdrive technology can increase fuel efficiency by roughly 50 percent and notes that the company has met with several automakers to showcase its technology.
June 26, 2002: Paice testifies before the U.S. House Committee on Science, Subcommittee on Energy, along with GM and other entities committed to new automotive technologies. The hearing focuses on how to accelerate the transition of high-tech concepts in automotive technology from the lab to the production line. In particular, the hearings focus on the development of this technology in the U.S. auto industry. Paice Director and former GM executive Robert Templin testifies on the advantages of the Paice’s technology in hybrid electric vehicles and how that technology would benefit the U.S. auto industry.
June 8, 2004: Paice files suit against Toyota Motor Corporation in U.S. District Court for the Eastern District of Texas for infringement of Paice’s patents related to hybrid vehicle technology.
December 20, 2005: At the conclusion of a 10-day trial, a jury finds that Toyota’s hybrid vehicles infringe two claims of the Paice ‘970 patent. The jury rejects Toyota’s claims that the asserted claims of Paice’s patent are invalid and awards Paice past damages of $4,269,950 (based on U.S. sales of the Toyota Prius, Toyota Highlander Hybrid and Lexus RX400h Hybrid between June 2004 and November 2005).
Following the December 2005 trial, Toyota files a motion asking the U.S. District Court judge to set aside the jury’s infringement finding or give Toyota a new trial.
April 2006: Dr.Severinsky resigns as Paice CEO to become CEO of Fuelcor LLC, an intellectual property development and management company for making synthetic fuels. Robert Oswald, an automotive executive with 45 years’ experience at Ford and Robert Bosch North America, is named CEO.
August 16, 2006: The U.S. District Court judge rejects Toyota’s motion to set aside the jury’s finding of patent infringement of the ‘970 patent and rejects Toyota’s request for a new trial. The judge sets an ongoing royalty of $25 per car for the three infringing vehicles (Prius II, Highlander Hybrid and Lexus RX400h) for the remaining life of the ‘970 patent.
August 31, 2006: Toyota appeals the U.S. District Court’s judgment that Toyota infringes the ‘970 patent. Paice cross-appeals certain issues, principally whether the ongoing royalty of $25 per car is the right amount. The case goes to the U.S. Court of Appeals for the Federal Circuit.
September 12, 2006: Paice is awarded U.S. Patent No. 7,104,347 (the ’347 patent).
May 8, 2007: Paice files a second lawsuit against Toyota in the Eastern District of Texas, alleging that Toyota is now willfully infringing the ‘970 patent with respect to its new hybrid vehicles brought to market after the December 2005 trial. This second lawsuit also alleges that the ‘347 patent is infringed by the sale of the original Toyota hybrid vehicles, as well as these newly introduced vehicles. The case is currently pending.
July 3, 2007: Paice is awarded U.S. Patent No. 7,237,634. The company amends its second lawsuit to allege that this new patent also is infringed by Toyota’s hybrid vehicles.
October 18, 2007: The U.S. Court of Appeals for the Federal Circuit affirms the judgment regarding Toyota’s infringement of the Paice ‘970 patent, rejecting Toyota’s challenges to the jury’s verdict. The court of appeals does agree with Paice that the ongoing royalty should be reconsidered and remands the case to the District Court for the determination of an ongoing royalty.
July 21, 2008: A one-day evidentiary hearing is held in U.S. District Court on the remanded issue of ongoing royalties in light of Toyota’s continued infringement of the ’970 patent. Each side presents technical and damages expert testimony at the hearing.
October 2008: The University of Maryland inducts Dr. Severinsky into the Clark School of Engineering’s Innovation Hall of Fame for his “pioneering work in the development of the Hyperdrive power-amplified internal combustion engine power train for hybrid vehicles.”
April 17, 2009: The U.S. District Court determines that, in light of the
testimony and evidence presented at the July 2008 remand evidentiary hearing, the appropriate ongoing royalty should be set as “a percentage of wholesale vehicle price, of 0.48% for each Toyota Prius II, 0.32% for each Toyota Highlander, and 0.26% for each Lexus RX400H.” These percentages would result in a royalty of $98 per each vehicle based on current Toyota pricing.
April 21, 2009: The U.S. Supreme Court denies Toyota's petition for certiorari seeking review of the liability finding on the '970 patent.
May 15, 2009: Toyota appeals the U.S. District Court’s ruling regarding the determination of the ongoing royalty. The case again
goes to the U.S. Court of Appeals for the Federal Circuit.
September 3, 2009: Paice files a complaint with the International Trade Commission, alleging infringement of the ‘970 patent by certain Toyota hybrid electric vehicles that went on sale after the August 2006 final judgment in the first lawsuit.
September 25, 2009: In the second lawsuit, the U.S. District Court stays the damages portion of the case with respect to the '970, ‘347 and ‘634 patents pending resolution of the ITC investigation of the ‘970 patent. A trial date has not yet been set for the infringement portions of the case for the ‘347 and ‘634 patents.
October 5, 2009: The U.S. International Trade Commission votes to launch an investigation into whether Toyota infringes Paice’s ‘970 patent. The ITC has the authority to block Toyota from importing its hybrid vehicles into the U.S. to protect the U.S. market from goods manufactured overseas that infringe U.S. patents.
November 2009: The American Society for Mechanical Engineers will present Dr. Severinsky the Thomas A. Edison Patent Award in recognition of his hybrid electric vehicle patent. This award recognizes the creativity of Paice’s invention as the potential of significantly enhancing an aspect of mechanical engineering.
Present: Toyota has taken advantage of the U.S. developed Paice technology, resulting in employment of workers outside the U.S.
April 19 -23, 2010: ITC trial scheduled in Washington, D.C.
1978: Dr. Alex Severinsky, a Russian immigrant with a Ph.D. in electrical engineering, arrives in the United States.
1979: America enters a major oil shortage. Amazed at the long lines for gasoline, Dr. Severinsky conceives the idea of developing hybrid vehicles.
1986: Dr. Severinsky is admitted to a small company incubator at the University of Maryland that helps regional entrepreneurs build early-stage companies.
1991 - 1992: While serving as a lecturer at the University of Maryland’s A. James Clark School of Engineering, Dr. Severinsky begins to actively focus on his ideas for developing commercially successful hybrid vehicles.
1992: Dr. Severinsky forms Paice (Power Assisted Internal Combustion Engines) with support from the Maryland Technology Enterprise Institute (Mtech). Paice files its first of many patent applications relating to hybrid electric vehicles.
September 6, 1994: Paice is issued its first patent – U.S. Patent No. 5,343,970 (the ’970 patent) – for the Hyperdrive powertrain system. The patent involves technology that lets automakers provide torque to the wheels of a vehicle from the motor, the internal combustion engine, or both. It represented a groundbreaking technology that allowed hybrid vehicles to become commercially viable – and recently earned Dr. Severinsky the prestigious Thomas A. Edison Patent Award from the American Society for Mechanical Engineers
1998: Paice receives funding from The Abell Foundation, a non-profit organization that supports causes such as increasing energy efficiency and helps fund a number of charitable programs. Since its initial funding, Abell has invested more than $20 million to support the development of the Hyperdrive technology.
October 1999: Dr. Severinsky demonstrates a prototype of the Paice technology, proving that it effectively can reduce the gas consumption of a Cadillac Coup de Ville by nearly one-half, while retaining its driving performance. A key to the Paice technology is the use of voltages of five hundred volts or higher in hybrid vehicles. Paice’s prototype demonstrated that using high voltage was not only workable, it was essential to achieving good fuel economy while maintaining the driving performance that U.S. drivers demand. Following the development and prove-out of the prototype, Paice continues pursuing joint venture opportunities and licensing agreements with automakers.
December 6, 2001: Paice testifies before the U.S. Senate Commerce, Science, and Transportation Committee, along with GM, Ford, Toyota and other major automakers. The hearing focuses on automobile fuel economy and the federal Corporate Average Fuel Economy (CAFE) program. Paice COO and a former GM chief engineer Ted Louckes testifies that Paice’s Hyperdrive technology can increase fuel efficiency by roughly 50 percent and notes that the company has met with several automakers to showcase its technology.
June 26, 2002: Paice testifies before the U.S. House Committee on Science, Subcommittee on Energy, along with GM and other entities committed to new automotive technologies. The hearing focuses on how to accelerate the transition of high-tech concepts in automotive technology from the lab to the production line. In particular, the hearings focus on the development of this technology in the U.S. auto industry. Paice Director and former GM executive Robert Templin testifies on the advantages of the Paice’s technology in hybrid electric vehicles and how that technology would benefit the U.S. auto industry.
June 8, 2004: Paice files suit against Toyota Motor Corporation in U.S. District Court for the Eastern District of Texas for infringement of Paice’s patents related to hybrid vehicle technology.
December 20, 2005: At the conclusion of a 10-day trial, a jury finds that Toyota’s hybrid vehicles infringe two claims of the Paice ‘970 patent. The jury rejects Toyota’s claims that the asserted claims of Paice’s patent are invalid and awards Paice past damages of $4,269,950 (based on U.S. sales of the Toyota Prius, Toyota Highlander Hybrid and Lexus RX400h Hybrid between June 2004 and November 2005).
Following the December 2005 trial, Toyota files a motion asking the U.S. District Court judge to set aside the jury’s infringement finding or give Toyota a new trial.
April 2006: Dr.Severinsky resigns as Paice CEO to become CEO of Fuelcor LLC, an intellectual property development and management company for making synthetic fuels. Robert Oswald, an automotive executive with 45 years’ experience at Ford and Robert Bosch North America, is named CEO.
August 16, 2006: The U.S. District Court judge rejects Toyota’s motion to set aside the jury’s finding of patent infringement of the ‘970 patent and rejects Toyota’s request for a new trial. The judge sets an ongoing royalty of $25 per car for the three infringing vehicles (Prius II, Highlander Hybrid and Lexus RX400h) for the remaining life of the ‘970 patent.
August 31, 2006: Toyota appeals the U.S. District Court’s judgment that Toyota infringes the ‘970 patent. Paice cross-appeals certain issues, principally whether the ongoing royalty of $25 per car is the right amount. The case goes to the U.S. Court of Appeals for the Federal Circuit.
September 12, 2006: Paice is awarded U.S. Patent No. 7,104,347 (the ’347 patent).
May 8, 2007: Paice files a second lawsuit against Toyota in the Eastern District of Texas, alleging that Toyota is now willfully infringing the ‘970 patent with respect to its new hybrid vehicles brought to market after the December 2005 trial. This second lawsuit also alleges that the ‘347 patent is infringed by the sale of the original Toyota hybrid vehicles, as well as these newly introduced vehicles. The case is currently pending.
July 3, 2007: Paice is awarded U.S. Patent No. 7,237,634. The company amends its second lawsuit to allege that this new patent also is infringed by Toyota’s hybrid vehicles.
October 18, 2007: The U.S. Court of Appeals for the Federal Circuit affirms the judgment regarding Toyota’s infringement of the Paice ‘970 patent, rejecting Toyota’s challenges to the jury’s verdict. The court of appeals does agree with Paice that the ongoing royalty should be reconsidered and remands the case to the District Court for the determination of an ongoing royalty.
July 21, 2008: A one-day evidentiary hearing is held in U.S. District Court on the remanded issue of ongoing royalties in light of Toyota’s continued infringement of the ’970 patent. Each side presents technical and damages expert testimony at the hearing.
October 2008: The University of Maryland inducts Dr. Severinsky into the Clark School of Engineering’s Innovation Hall of Fame for his “pioneering work in the development of the Hyperdrive power-amplified internal combustion engine power train for hybrid vehicles.”
April 17, 2009: The U.S. District Court determines that, in light of the
testimony and evidence presented at the July 2008 remand evidentiary hearing, the appropriate ongoing royalty should be set as “a percentage of wholesale vehicle price, of 0.48% for each Toyota Prius II, 0.32% for each Toyota Highlander, and 0.26% for each Lexus RX400H.” These percentages would result in a royalty of $98 per each vehicle based on current Toyota pricing.
April 21, 2009: The U.S. Supreme Court denies Toyota's petition for certiorari seeking review of the liability finding on the '970 patent.
May 15, 2009: Toyota appeals the U.S. District Court’s ruling regarding the determination of the ongoing royalty. The case again
goes to the U.S. Court of Appeals for the Federal Circuit.
September 3, 2009: Paice files a complaint with the International Trade Commission, alleging infringement of the ‘970 patent by certain Toyota hybrid electric vehicles that went on sale after the August 2006 final judgment in the first lawsuit.
September 25, 2009: In the second lawsuit, the U.S. District Court stays the damages portion of the case with respect to the '970, ‘347 and ‘634 patents pending resolution of the ITC investigation of the ‘970 patent. A trial date has not yet been set for the infringement portions of the case for the ‘347 and ‘634 patents.
October 5, 2009: The U.S. International Trade Commission votes to launch an investigation into whether Toyota infringes Paice’s ‘970 patent. The ITC has the authority to block Toyota from importing its hybrid vehicles into the U.S. to protect the U.S. market from goods manufactured overseas that infringe U.S. patents.
November 2009: The American Society for Mechanical Engineers will present Dr. Severinsky the Thomas A. Edison Patent Award in recognition of his hybrid electric vehicle patent. This award recognizes the creativity of Paice’s invention as the potential of significantly enhancing an aspect of mechanical engineering.
Present: Toyota has taken advantage of the U.S. developed Paice technology, resulting in employment of workers outside the U.S.
April 19 -23, 2010: ITC trial scheduled in Washington, D.C.