3M Sues XPEL Over Patent Infringement

January 6th, 2016 by Casey Flores

The St. Paul, Minn.-based 3M Company has filed a patent infringement lawsuit in federal district court in Minnesota against XPEL Technologies Corporation.

The suit alleges that XPEL Technologies Corporation’s XPF paint protection film (PPF) product infringes 3M’s U.S. Patent No. 8,765,263 (`263), which is “a multilayer protective film comprising a first layer, a second layer and a pressure-sensitive adhesive layer.”

“XPEL has been and is directly infringing at least claim 1 of the ’263 Patent in this District and elsewhere … by making, using, selling, offering for sale, and/or importing at least its XPF Paint Protection Film,” the complaint reads.

3M claims XPEL’s film infringes upon the `263 Patent with all three layers bonded in the specific way 3M has patented.

“XPEL has caused and will continue to cause [3M] injury and damage by infringing the ’263 Patent. [3M] will suffer further injury unless and until XPEL is enjoined from infringing,” the complaint reads.

In response to the complaint, Michael Dobbins, marketing manager with XPEL Technologies Corporation, says, “We are currently investigating the allegations made and at this time we have no comment.”

According to the complaint, 3M wants six things out of the lawsuit:

  1. To enter judgment that XPEL has infringed the ’263 Patent;
  2. To enter an order permanently enjoining XPEL and its officers, agents, servants, employees, attorneys, and all persons in active concert or participation with any of them, from infringing the patent;
  3. To award 3M their respective damages in amounts sufficient to compensate them for XPEL’s alleged infringement;
  4. To award an accounting of all XPEL’s infringing sales through final judgment;
  5. The company wants XPEL to pay its attorneys’ fees, expenses and costs incurred in this action; and
  6. For 3M to be awarded “such other and further relief as this Court deems just and proper.”

When asked for additional comments, a representative from 3M told Window Film magazine that the company does not respond to pending litigation.

Whether 3M plans to file suit against other PPF suppliers remains to be seen. What is clear, however, is the effect the news has had on the stock price of XPEL. Many analysts are commenting on the matter, one noting on January 4 that A lawsuit from 3M has cut the stock by more than half in two days.”

To see the company’s current stock price, and to witness the steep drop since the news broke, see this link from Bloomberg Business.

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  1. This may be the appropriate time for the apparently ineffective, entrenched non-executive directors to stop paying themselves $3,000+ per month in arbitrary directors fees and to expand the board with persons possessing appropriate industry and crisis management expertise and then resign from the board.

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