Eaton wins injunction in transmission patent case; ArvinMeritor to appeal

WILMINGTON, Del. (Sept. 20, 2001) — ArvinMeritor has been ordered to stop making and selling its Engine Synchro Shift transmission automation system as the result of a patent infringement lawsuit by Eaton, a decision it will appeal.

In its lawsuit, Eaton claimed the Rockwell “ESS” transmission infringed an Eaton patent which covers the clutchless shifting system used in its Eaton Fuller AutoShift transmissions, as well as other partially and fully automated transmissions in its product line.

Eaton originally filed the suit in July 1997 against Rockwell International, which later spun off the Meritor Automotive business that is now part of ArvinMeritor. In July 1998, a jury found that Rockwell and Meritor “willfully infringed” upon Eaton’s technology.

Delaware U.S. District Court Chief Judge Joseph Farnan Tuesday handed down a permanent injunction in favor of Eaton, denying ArvinMeritor’s motion for stay of injunction pending appeal. The injunction prohibits further manufacture or sale of any ArvinMeritor truck transmissions that incorporate the ESS shift automation system or variations. The court has yet to rule on the amount of damages due Eaton.

Earlier this year, in February, Judge Farnan rejected ArvinMeritor’s defense that Eaton’s patent had been obtained improperly, and he ruled in favor of Eaton.

ArvinMeritor said yesterday it would appeal. The ESS is a small part of ArvinMeritor’s transmission line; SureShifts and the new FreedomLine automated transmissions are not affected by the ruling, according to ArvinMeritor officials.

M. Lee Murrah, chief patent counsel for ArvinMeritor, said the court’s interpretation of Eaton’s automatic transmission patent was incorrectly applied to ArvinMeritor’s ESS automated manual transmission. Murrah said ArvinMeritor’s interpretation of the Eaton patent was supported by testimony of the inventor and of Eaton’s patent attorney.