Paice History

Paice was founded by Dr. Alex Severinsky in 1992.  Dr. Severinsky received his M.S. degree in electrical engineering from Kharkov College of Radioelectronics in Kharkov, Ukraine, in 1967, and his Ph.D. in electrical engineering from the Institute for Precision Measurements in Radioelectronics and Physics in Moscow in 1975. He came to the United States in 1978 as a refugee, with $800 in his pocket and a wife and young son to support, and found work in Texas as an electrical engineer in the oil service industry.

Dr. Severinsky first conceived of creating improved hybrid vehicles while waiting in long lines for gasoline in Dallas during the oil shortages of the late 1970s.  Frustrated, he imagined that there had to be a better way to power an automobile than simply by a gasoline-powered engine.  He looked at alternative approaches – including pure electric and fuel cell vehicles – but reasoned that using a full hybrid electric powertrain was the optimal approach.  However, with a family to support and little knowledge of how to raise funds for a business, Dr. Severinsky had to devote his time to several jobs in high technology industries.  Once he established himself, he began to actively focus on his ideas for commercially successful hybrid vehicles. 

Later, while serving as a lecturer for the A. James Clark School of Engineering at the University of Maryland at College Park, Dr. Severinsky intensified his work on his hybrid vehicle concepts with support from the Maryland Technology Enterprise Institute (Mtech).  In 1992, Dr. Severinsky formed Paice (Power Assisted Internal Combustion Engines), and filed a patent application on his concepts for a hybrid vehicle.  The result of this patent application was Dr. Severinsky’s first issued patent -- US Patent No. 5,343,970 (or the “‘970 patent”) -- in 1994.

The Paice Patents

The ’970 patent covers a hybrid electric vehicle that includes both an internal combustion engine and an electric motor.  In a hybrid electric vehicle, fuel economy may be increased and harmful emissions may be reduced depending on the vehicle’s driving mode -- whether to provide torque to the wheels of the vehicle from the motor, the internal combustion engine, or both..

The ’970 patent describes a system that includes a microprocessor that receives control inputs and uses these variables to determine whether the internal combustion engine, the electric motor, or both should provide torque to the wheels.  The ’970 patent describes a system that also includes a powerful electric motor that is provided with energy from a battery at high voltage and low current to dramatically increase the efficiency of the system.

After this first patent was granted, Dr. Severinsky set out to commercialize the invention described in the ’970 patent, while continuing to explore ways to improve on his ideas.  Dr. Severinsky and others at Paice worked extensively to prove the viability of hybrid vehicle technology, as well as to further improve that technology.  As a result of his continued work, Dr. Severinsky filed several additional patent applications starting in September 1998, leading to further patents issued from 2001 through mid-2009. 

In addition to employing an internal combustion engine and two motors that can power the vehicle or recharge the battery, these later patents cover a hybrid vehicle that includes a microprocessor to arbitrate between various operating modes based on the vehicle’s instantaneous torque requirements as demanded by the driver for propelling the vehicle (also called “road load”); the state of charge of the battery; and other operating parameters.  In addition, the inventions described in these patents combine these road load concepts with a high voltage and relatively low current electrical system, enhancing the performance and efficiency of the overall system.

Dr. Severinsky has been recognized for the Paice patents and his work on hybrid electric vehicle technology – Awards and Recognitions.

Investment by The Abell Foundation and Others

The opportunities presented by this patented technology led many knowledgeable automotive industry experts to invest in Paice personally.  The promise of Paice’s technology also attracted to its Board of Directors several former executives from General Motors, Ford and Bosch.

In addition to these individual investors, The Abell Foundation, headquartered in Baltimore, has invested over $20 million in Paice since 1998.  In addition to its focus on charitable programs the Baltimore region, The Abell Foundation is interested in advancing broader social and economic objectives such as increasing energy efficiency and promoting alternative energy.  Another specific motive in making this investment was Abell’s interest in helping to reinvigorate the U.S. auto industry by encouraging the aggressive introduction of new technologies.  Abell believed that investing in Paice could help to save and create good manufacturing jobs in this country, help improve automobile mileage to decrease U.S. dependence on imported oil, and reduce pollution caused by cars.  Of course, Abell also hopes to generate a financial return for the Foundation so that it can support and expand its current charitable projects.

Commercialization of the Paice Technology

Paice management and investors understand that the development, manufacture and sale of automobiles is a massive undertaking, requiring huge financial resources, a vast manufacturing and distribution infrastructure and brand recognition and marketing power.  It was never contemplated that Paice alone could manufacture and sell vehicles.   Paice invented its powertrain concept, called the Hyperdrive, but its management reasoned that the development of a mass market vehicle would require a consortium of companies with manufacturing experience. 

Paice thus began to work with engineering organizations such as Lockheed Martin Control Systems and Roush Industries in developing a demonstration prototype and preparing to commercialize the Hyperdrive system.  In addition to engineering, research and development, Paice has focused on establishing licensing arrangements with original equipment manufacturers, suppliers, and specialty manufacturing companies in connection with mass market or specialized vehicle programs.

Paice is also involved in patent litigation with one automotive manufacturer, and this manufacturer’s products have been found to infringe Paice’s ‘970 patent.  Additional litigation regarding other Paice patents is ongoing. In addition, on September 3, 2009, Paice filed a complaint with the ITC, requesting that an investigation be instituted under Section 337 of the Tariff Act of 1930 - ITC Complaint.

Paice continues to engage in discussions with potential partners with the expectation this will lead to the manufacture of vehicles based on its Hyperdrive system.  It is committed to expanding the adoption of its technology through licensing.  In this way, Paice hopes to generate a return for its investors while accelerating the introduction of highly fuel efficient, clean and cost-effective hybrid electric vehicles. 

Paice History

Paice was founded by Dr. Alex Severinsky in 1992.  Dr. Severinsky received his M.S. degree in electrical engineering from Kharkov College of Radioelectronics in Kharkov, Ukraine, in 1967, and his Ph.D. in electrical engineering from the Institute for Precision Measurements in Radioelectronics and Physics in Moscow in 1975. He came to the United States in 1978 as a refugee, with $800 in his pocket and a wife and young son to support, and found work in Texas as an electrical engineer in the oil service industry.

Dr. Severinsky first conceived of creating improved hybrid vehicles while waiting in long lines for gasoline in Dallas during the oil shortages of the late 1970s.  Frustrated, he imagined that there had to be a better way to power an automobile than simply by a gasoline-powered engine.  He looked at alternative approaches – including pure electric and fuel cell vehicles – but reasoned that using a full hybrid electric powertrain was the optimal approach.  However, with a family to support and little knowledge of how to raise funds for a business, Dr. Severinsky had to devote his time to several jobs in high technology industries.  Once he established himself, he began to actively focus on his ideas for commercially successful hybrid vehicles. 

Later, while serving as a lecturer for the A. James Clark School of Engineering at the University of Maryland at College Park, Dr. Severinsky intensified his work on his hybrid vehicle concepts with support from the Maryland Technology Enterprise Institute (Mtech).  In 1992, Dr. Severinsky formed Paice (Power Assisted Internal Combustion Engines), and filed a patent application on his concepts for a hybrid vehicle.  The result of this patent application was Dr. Severinsky’s first issued patent -- US Patent No. 5,343,970 (or the “‘970 patent”) -- in 1994.

The Paice Patents

The ’970 patent covers a hybrid electric vehicle that includes both an internal combustion engine and an electric motor.  In a hybrid electric vehicle, fuel economy may be increased and harmful emissions may be reduced depending on the vehicle’s driving mode -- whether to provide torque to the wheels of the vehicle from the motor, the internal combustion engine, or both..

The ’970 patent describes a system that includes a microprocessor that receives control inputs and uses these variables to determine whether the internal combustion engine, the electric motor, or both should provide torque to the wheels.  The ’970 patent describes a system that also includes a powerful electric motor that is provided with energy from a battery at high voltage and low current to dramatically increase the efficiency of the system.

After this first patent was granted, Dr. Severinsky set out to commercialize the invention described in the ’970 patent, while continuing to explore ways to improve on his ideas.  Dr. Severinsky and others at Paice worked extensively to prove the viability of hybrid vehicle technology, as well as to further improve that technology.  As a result of his continued work, Dr. Severinsky filed several additional patent applications starting in September 1998, leading to further patents issued from 2001 through mid-2009. 

In addition to employing an internal combustion engine and two motors that can power the vehicle or recharge the battery, these later patents cover a hybrid vehicle that includes a microprocessor to arbitrate between various operating modes based on the vehicle’s instantaneous torque requirements as demanded by the driver for propelling the vehicle (also called “road load”); the state of charge of the battery; and other operating parameters.  In addition, the inventions described in these patents combine these road load concepts with a high voltage and relatively low current electrical system, enhancing the performance and efficiency of the overall system.

Dr. Severinsky has been recognized for the Paice patents and his work on hybrid electric vehicle technology – Awards and Recognitions.

Investment by The Abell Foundation and Others

The opportunities presented by this patented technology led many knowledgeable automotive industry experts to invest in Paice personally.  The promise of Paice’s technology also attracted to its Board of Directors several former executives from General Motors, Ford and Bosch.

In addition to these individual investors, The Abell Foundation, headquartered in Baltimore, has invested over $20 million in Paice since 1998.  In addition to its focus on charitable programs the Baltimore region, The Abell Foundation is interested in advancing broader social and economic objectives such as increasing energy efficiency and promoting alternative energy.  Another specific motive in making this investment was Abell’s interest in helping to reinvigorate the U.S. auto industry by encouraging the aggressive introduction of new technologies.  Abell believed that investing in Paice could help to save and create good manufacturing jobs in this country, help improve automobile mileage to decrease U.S. dependence on imported oil, and reduce pollution caused by cars.  Of course, Abell also hopes to generate a financial return for the Foundation so that it can support and expand its current charitable projects.

Commercialization of the Paice Technology

Paice management and investors understand that the development, manufacture and sale of automobiles is a massive undertaking, requiring huge financial resources, a vast manufacturing and distribution infrastructure and brand recognition and marketing power.  It was never contemplated that Paice alone could manufacture and sell vehicles.   Paice invented its powertrain concept, called the Hyperdrive, but its management reasoned that the development of a mass market vehicle would require a consortium of companies with manufacturing experience. 

Paice thus began to work with engineering organizations such as Lockheed Martin Control Systems and Roush Industries in developing a demonstration prototype and preparing to commercialize the Hyperdrive system.  In addition to engineering, research and development, Paice has focused on establishing licensing arrangements with original equipment manufacturers, suppliers, and specialty manufacturing companies in connection with mass market or specialized vehicle programs.

Paice is also involved in patent litigation with one automotive manufacturer, and this manufacturer’s products have been found to infringe Paice’s ‘970 patent.  Additional litigation regarding other Paice patents is ongoing. In addition, on September 3, 2009, Paice filed a complaint with the ITC, requesting that an investigation be instituted under Section 337 of the Tariff Act of 1930 - ITC Complaint.

Paice continues to engage in discussions with potential partners with the expectation this will lead to the manufacture of vehicles based on its Hyperdrive system.  It is committed to expanding the adoption of its technology through licensing.  In this way, Paice hopes to generate a return for its investors while accelerating the introduction of highly fuel efficient, clean and cost-effective hybrid electric vehicles.