Canadian Urban Transit Association: Canadian Public Transit Industry Sues to End Frivolous Patent Claims

TORONTO, ONTARIO--(Marketwired - Aug. 20, 2013) - The Canadian Urban Transit Association (CUTA) has filed suit against foreign owned Dovden Investments Inc. (Dovden). The claim asserts that Dovden's Canadian patents are invalid, void and of no effect as they do not meet the requirements prescribed under the Patent Act.

CUTA seeks to end Dovden's practice of bringing unfounded, unsustainable patent infringement actions against its members, including numerous publicly funded transit systems, agencies and their suppliers.

Increasingly, Dovden has issued letters to extract payment for licences that businesses do not use, want or need. If companies do not agree to Dovden's terms, Dovden commences a patent infringement action in the Federal Court. Since 2006, Dovden has commenced 42 such actions, with 32 commenced in the past year.

Dovden has pursued none of these to a conclusion in the courts, let alone to trial. In some cases, businesses have paid the arbitrary licence fee demanded by Dovden to avoid trial costs.

"Dovden's threat is costly litigation" says Michael Roschlau, CUTA President and CEO. "Most publicly funded transit agencies could not sustain such legal costs in addition to efficiently serving transit users on a daily basis" he says. "At the same time, responsible public authorities cannot ignore a patent infringement law suit or the opportunity to settle such a suit" explains Roschlau. "

Dovden's patents have managed to go unchallenged… until now. "In representing our members through this action" says Roschlau, "CUTA hopes to scrutinize Dovden's patents and practices in Court and show that Dovden's patents are invalid."

Earlier this year, the American Public Transportation Association filed a similar lawsuit against ArrivalStar, a foreign investment corporation with ties to Dovden Investments. That suit is pending.

Background:

• Dovden is a foreign corporation that does not make, use or sell products to the public, but instead simply licenses patents it holds under the threat of costly patent infringement litigation.
• CUTA's Vision is to inspire and influence the evolution of integrated urban mobility. CUTA is the collective and influential voice of public transportation in Canada, dedicated to being at the centre of urban mobility issues with all orders of government, and delivering the highest value to its members and the communities they serve. CUTA is the national association representing public transit systems, suppliers to the industry, government agencies, individuals and related organizations in Canada.