On July 19, 2010, Toyota and Paice reached an agreement wherein Paice granted Toyota a license for use of hybrid technology covered by patents held by Paice. As a result of the agreement, all litigation related to the patents has been dropped.

“I am happy that Toyota and Paice came to an amicable resolution on the use of my power-assisted engine invention,” said Dr. Alex Severinsky, who founded Paice in 1992. “We have long believed that hybrid vehicles represent the wave of the future for the auto industry and hope that consumers will continue to embrace hybrid vehicles as a meaningful way to reduce emissions.”

The parties agree that, although certain Toyota vehicles have been found to be equivalent to a Paice patent, Toyota invented, designed and developed the Prius and Toyota’s hybrid technology independent of any inventions of Dr. Severinsky and Paice as part of Toyota’s long history of innovation.

“After six years of litigation, we are pleased to reach a settlement with Toyota,” said Frances Keenan, chairman of the Paice board of directors. “Toyota has been a leader in the hybrid industry – selling more hybrid vehicles than anyone in the world – and we appreciate and applaud their achievements.”

“Paice is committed to the ongoing development of hybrid technology and selected research activities,” added Robert Oswald, president and CEO of Paice. “We will continue to pursue licensing agreements with other automakers which use hybrid technology patented by Paice.”

In July 2010, Paice reached an agreement with Ford for the license of its breakthrough 1994 hybrid vehicle patent (U.S. Patent 5,343,970).