PowerSports Business

December 1, 2014

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PWC Arctic Cat claims Sea-Doo using intellectual property A patent-infringement suit has been filed against Bombardier Recreational Products Inc. and BRP U.S. Inc. alleging that the makers of the jet propulsion personal watercraft (PWC), Sea-Doo, have committed substantial acts of infringement, according to Hagens Berman. The complaint, filed in the U.S. District Court for the Southern District of Florida, states that the companies have marketed, pro- moted, offered for sale, sold and distributed Sea-Doo personal watercraft that infringe on the intellectual property of its competitor Arctic Cat. A long-standing safety concern in the PWC industry is the inability to steer a PWC once the throttle is released, as is common in emergency situations, particularly for inex- perienced riders. According to the complaint, Arctic Cat was responsible for originally devel- oping a novel and effective off-throttle thrust mechanism to make PWC safer. The technol- ogy provides riders with temporary "steerable thrust" when the rider turns in off-throttle situations to help prevent fatalities and injuries from collisions. Arctic Cat representatives demonstrated the technology to the Coast Guard, representatives of BRP and others in the PWC industry in 1999 and 2000. The United States Patent and Trademark Office awarded Arctic Cat patents for its novel and valuable off-throttle steering technology, entitled "Watercraft with Steer-Response Engine Speed Controller" and "Controlled Thrust Steering System for Watercraft." According to the complaint, BRP origi- nally attempted to provide off-throttle steer- ing with an alternative technology called "Off-Power Assisted Steering" (OPAS) which relied on mechanical rudders in low and off- power situations. Ultimately, in 2009, BRP began transitioning its line of Sea-Doo PWC to "Off-Throttle Assisted Steering" (OTAS) technology that, according to the complaint, infringes the patents asserted by Arctic Cat. "We believe strongly in our technology," said Michael Okerlund, vice president of legal affairs at Arctic Cat. "Even after with- drawing from the PWC market, we contin- ued to develop, demonstrate and patent our controlled-thrust technology as we believed it would save lives, and that it represented the best solution to the off-throttle steering prob- lem. The fact that BRP moved to our technol- ogy validates our assessment." "In our view, this timeline of events paints a very clear picture," said Nicho- las Boebel, of-counsel at Hagens Berman. "From our investigation, it appears that after seeing Arctic Cat's demonstration, BRP initially took a different approach but ultimately decided that its own solution was inadequate. Unfortunately, the way we see it, instead of choosing to be creative or approaching Arctic Cat directly, BRP simply took the technology that Arctic Cat worked hard to develop and protect." The suit states, "BRP determined that Arctic Cat's OTAS technology provided enhanced rider safety and other benefits that were unavailable with BRP's [Off-Power Assisted Steering] OPAS technology. On fur- ther information and belief, BRP's adoption of OTAS technology has helped reduce the number of avoidable injuries and deaths from operation of Sea-Doo PWCs." "These acts of infringement have harmed and continue to harm Arctic Cat, and we believe that the company is entitled to relief as BRP has infringed upon Arctic Cat's intel- lectual property," Boebel added. PSB Patent-infringement lawsuit filed against BRP 30 • December 1, 2014 • Powersports Business www.PowersportsBusiness.com PWC sales up 25 percent in September PWC sales continued to be strong in September, up about 25 percent from 2013, according to Info-Link's Bellwether Report. The Bellwether report tracks boat sales across the country based on new U.S. boat reg- istrations. Bellwether states are geographically dispersed states representing roughly half of the U.S. boat market (varies by market segment and time of year). Boat sales were up in almost every category when compared to September 2013, although at a slower rate than in August. The sterndrive/jet category was the only one to be down year-over- year, with unit sales down nearly 5 percent. BOISJOLI NAMED ENTREPRENEUR OF THE YEAR IN QUEBEC José Boisjoli, president and chief executive officer of BRP, is this year's Entrepreneur of the Year Québec winner, according to a report from Ernst & Young. Over the last 10 years, and through the economic downturn, BRP has tripled in value under his leadership. Today, the company's products are distributed in more than 100 countries by more than 4,200 dealers and distributors. "Leading entrepreneurs pursue their pas- sion relentlessly," said Daniel Baer, program co-director. "José's love for powersports is what makes him such a standout. And it's that passion that resonates with employees, con- sumers, dealers and distributors." "Entrepreneur of the Year recognizes busi- ness leaders whose impact goes beyond the boardroom and into the community," said Luc Charbonneau, program co-director. "José has created a dynamic corporate culture with community engagement at its core." In Canada, the company supports not-for- profit organizations such as the Red Cross, United Way and the Fondation du Centre Hospitalier Universitaire de Sherbrooke (CHUS Foundation). Boisjoli won in the Business-to-Business Products and Services category. 2015 WAVERUNNER MOBILE APP NOW AVAILABLE Yamaha WaterCraft Group announced the availability of its 2015 Yamaha WaveRun- ner and Boats mobile appli- cations for iOS and Android devices. The mobile apps allow users to: View images of all 2015 products in all color combinations Browse product features Compare Yamaha models to other brands Learn more about new innovations and technologies View a library of high-quality videos Stay connected with Yamaha on Facebook and Twitter Share favorites with your friends and family via social media applications View all the latest sales promotional offers PSB DIGEST BRP's José Boisjoli was named Quebec's Entrepreneur of the Year by Ernst & Young. Yamaha WaterCraft Group has made informa- tion about its 2015 lineup of boats and WaveRunners available via mobile app.

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