On November 7, 2014, Arctic Cat Inc. of Plymouth, Minnesota ("Arctic Cat") filed a complaint requesting that the ITC commence an investigation pursuant to Section 337.
The complaint alleges that Bombardier Recreational Products, Inc. of Canada and BRP US Inc. of Sturtevant, Wisconsin (collectively, "BRP") unlawfully import into the U.S., sell for importation, and/or sell within the U.S. after importation certain snowmobiles with engines having exhaust temperature-controlled engine technology and components thereof that infringe one or more claims of U.S. Patent Nos. 6,371,082 (the '082 patent), 6,550,450 (the '450 patent), and 7,258,107 (the '107 patent) (collectively, the "asserted patents").
According to the complaint, the asserted patents generally relate to exhaust temperature-controlled engine technology. In particular, the '082 and '450 patents relate to particular inventions for a two-cycle engine that allow for improved engine performance by using exhaust temperature sensing to help control ignition timing within an engine cycle. The '107 patent relates to a two-cycle engine using exhaust temperature sensing to help control fuel injection and enhance engine operation.
In the complaint, Arctic Cat states that BRP imports and sells products that infringe the asserted patents. The complaint specifically refers to various BRP snowmobiles as infringing products.
Regarding domestic industry, Arctic Cat states that it manufactures snowmobiles that practice the asserted patents in Minnesota. Arctic Cat specifically refers to a 585,000 square foot manufacturing facility in Thief River Falls, Minnesota and a 60,800 square foot manufacturing facility in St. Cloud, Minnesota. Arctic Cat estimates that approximately 20 percent of these facilities' usage is attributable to manufacturing activities for Arctic Cat's snowmobiles that practice the asserted patents. Arctic Cat also states that it invested approximately $4.8 million in engineering, research, and development activities for snowmobiles covered by the asserted patents in fiscal 2014.
As to related litigation, Arctic Cat states that it is currently engaged in a district court action against BRP in the U.S. District Court for the District of Minnesota relating to the asserted patents and additional patents. Arctic Cat further states it is engaged in litigation against Bombardier Recreational Products, Inc. in Canada in connection with Canadian counterparts to the asserted patents. Lastly, Arctic Cat refers to prior litigation against Polaris Industries, Inc. involving the '082 patent.
With respect to potential remedy, Arctic Cat requests that the Commission issue a limited exclusion order and permanent cease and desist orders directed at BRP.