Chinese lidar maker gets US patent infringement claim terminated

The International Trade Commission has terminated a patent infringement suit by an American lidar maker against a Chinese competitor. But the case will continue in federal court.

San Francisco-based Ouster Inc. sued Shanghai-based Hesai Group in April, seeking to bar Hesai from importing certain autonomous vehicle technology to the U.S. The ITC did not address the merits of Ouster’s claim. The ruling lifts a stay on a federal suit Ouster filed in U.S. District Court in Delaware seeking an injunction and monetary damages against Hesai.

The ITC initially determined on Aug. 24 the claim should be terminated. The commission’s final decision came Tuesday.

“Hesai has always believed all of Ouster’s infringement allegations are baseless and lack merit. Hesai’s lidar products are independently developed, based on years of research and engineering investment, not stolen IP,” Hesai Group said in a news release Thursday.

Lidar is an object detection system that works on the principle of radar but uses light from a laser. Hesai is a global leader in the technology. Its customers include autonomous trucking developer Kodiak Robotics.

Ouster seeks freedom from agreement reached by competitor that’s now a subsidiary

The ITC decision allows arbitrators time to decide whether Ouster must arbitrate based on a 2020 patent infringement settlement between Hesai and Velodyne Lidar. Ouster purchased Velodyne in February.

“Hesai has fully abided by the agreement, but Ouster tried to escape its legal obligations,” Hesai said, adding that it welcomes arbitration.

Ouster claimed it was not bound by the previous patent cross-licensing agreement Hesai reached with Velodyne following a suit Velodyne filed in 2019 against Hesai and Suteng Innovation Technology Co. Ltd., also known as RoboSense.

Hesai claims Ouster spent $800,000 lobbying against it in Washington

Hesai agreed to pay Velodyne millions in upfront payments and ongoing royalties. Velodyne sued Ouster alleging patent infringement in June 2022. That case went away when the two startups announced their merger in November.

Hesai claimed Ouster has spent $800,000 since last year on lobbying instead to smear Hesai.

“As a result of its failure to compete effectively in the lidar marketplace against Hesai and its continuing legal setbacks, Ouster is turning to political lobbying as its last resort. Ouster has been availing itself of the political and regulatory avenues by spreading xenophobic misinformation and proffering false claims through its lobbyists and media agents,” Hesai said.

Ouster did not immediately respond to a FreightWaves request for comment on Hesai’s claim about lobbying.

In an Aug. 28 statement following the ITC’s initial determination, Ouster said it invented digital lidar technology and holds one of the largest patent families in the lidar industry. Ouster claims that after the market shifted toward its digital lidar, Hesai stole Ouster’s patented technologies and incorporated them into Hesai’s competing products.

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