BRP, Arctic Cat reach global settlement over patent dispute between snowmobile rivals

A Ski-Doo brand snowmobile. (THE CANADIAN PRESS/AP Photo)

VALCOURT, Que — Bombardier Recreational Products Inc. and Arctic Cat say they have reached a global settlement to ongoing intellectual property disputes between the two makers of snowmachines.

Under terms of the confidential settlement agreement, two active court cases in the U.S. and in Canada will be dismissed.

Among the matters resolved is the dispute related to BRP's patents that place the rider closer to the front of the sled and Arctic Cat's full-sized snowmobiles with pyramidal frame designs.

Arctic Cat, a subsidiary of Textron Inc., and its Canadian dealers will be allowed to immediately resume the sale and delivery of its full lineup of snowmobiles in Canada.

The settlement comes nearly five months after a Canadian Federal Court judge ruled BRP is entitled to $2.83 million in damages from its rival due to a snowmobile patent infringement.

Justice Yvan Roy said Arctic Cat must pay BRP a royalty of $135 per unit on each of the nearly 21,000 snowmobiles infringing on the patent that were sold in Canada between 2008 and 2014.

- This report by The Canadian Press was first published Nov. 2, 2020.