When it comes to innovation, protecting your ideas can be just as important as creating them. #
High-profile disputes in the automotive sector, such as the infringement dispute between Piaggio and Peugeot Motocycles, highlight how patents and design rights are not just legal formalities; they can shape the competitive landscape and carry multi-million-euro consequences.
Background of the case
In October 2024, the Paris Court of Appeal (Cour d'appel de Paris , Pôle 5, 1re ch., 16 octobre 2024, n° 21/18176) ruledthat Peugeot Motocycles had infringed Piaggio's patents in relation to its Roll Lock technology.The decision ordered Peugeot Motocycles to pay Piaggio €3.3 million in damages. This ruling followed an earlier decision in May 2024, by the Italian Court of Cassation which ordered Peugeot Motocycles to pay Piaggio €1 million, re-inforcing Piaggio's position in multiple jurisdictions.
The intellectual property at stake
The dispute concerned several patents:
- EP 1 363 794,
- EP 1 561 612,
- EP 1 571 016
- EP 1 635 234
as well as Community Design 487723-0001.
The Roll Lock technology covered by Piaggio's patents was at the core of the dispute and relates to the locking of the electrically tiltable front axle to maintain balance without putting the foot on the ground when stopping the so-called MP3 scooter.
Legal proceedings across European jurisdictions
The dispute began in 2014, when Piaggio brought an infringement action against Peugeot Motocycles for allegedly using this Roll Lock technology under the name Anti-Tilting technology in its Metropolis scooter.
Peugeot Motocycles then contested the patent claims before the French and Italian courts.
In 2021, the Italian courts temporarily prohibited the sale of the Metropolis scooter in Italy. Alongside this restriction, Peugeot Motocycles was ordered to pay damages of €1 million, marking an early victory for Piaggio in the long-running litigation.
Meanwhile, Peugeot Motocycles continued to sell the Metropolis scooter in France.
The case continued to move through the Italian legal system, and in May 2024, the Italian Court of Cassation upheld the first decision and imposed an additional fine on Peugeot Motocycles. This judgment not only confirmed the infringement but also reinforced the damages order, leaving Peugeot with a significant financial penalty.
Just a few months later, on 16 October 2024, the Paris Court of Appeal found that the patent EP 1 561 612 had indeed been infringed and ordered Peugeot Motocyles to pay Piaggio a further €3.3 million.
However, the Court of Appeal did not go so far as to impose a marketing or sales ban on the so-called Metropolis scooter in France.
Conclusion
This case shows that it is necessary for companies to take industrial property aspects into account in their drive for innovation.
Moreover, court rulings on counterfeiting can have serious consequences for a company's economic life. While Peugeot Motocycles avoided a sales ban in France, the damages awarded illustrate the high economic stakes of patent infringement disputes, affecting the entire production chain and its employees.
For innovative companies, this case is a reminder that protecting and respecting IP rights is not only a legal obligation but a cornerstone of sustainable business and competitive advantage.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
