Weight Weenie Shop Owner
Specialized, Scott Settle Suspension Dispute
DECEMBER 05, 2005 --
MORGAN HILL, CA (BRAIN)-Scott USA dropped its challenge of Specialized's suspension patents and agreed not to sell its four-bar linkage Genius full-suspension bicycle design in the United States.
"After being forced to defend our FSR patent for more than 18 months, we can once again focus strictly on what we do best-making great bikes and equipment," said Mike Sinyard, Specialized's founder and president.
Scott USA originally pursued a licensing deal with Specialized, similar to the deal Specialized has with other manufacturers. However, Specialized declined to negotiate a license with Scott.
"We were kind of left with no option at that point. The Genius is a great bike which we wanted to sell here. So we decided to challenge the patents. However, after 18 months of battling it out in court the judge said the case was too close to call. The next step was going to trial," said Scott Montgomery, Scott USA's vice president of the bicycle division.
"Our dealers have pre-ordered so many Ransoms that it didn't make sense to continue to spend money on the suit. We have other great designs in development, so it's time to settle with Specialized and move on," Montgomery added. The Ransom is Scott's 2006 high-end full-suspension model.
Neither company is commenting on how much the court battle cost, but 18 months of lawyer fees add up. Now both companies are looking to funnel more money to R&D rather than to fancy lawyers in silk suits.</paragraph_body> </paragraph_body>