IN THE UNITED STATES DISTRICT COURT 

FOR THE WESTERN DISTRICT OF TEXAS 

WACO DIVISION 

ARCIMOTO, INC., 

Plaintiff 

§ 

§ 

§ 

§ 

vs. 

AYRO OPERATING COMPANY, INC. 

AND AYRO, INC., 

Defendants 

§ 

§ 

§ 

§ 

§ 

§ 

NO. 20-cv-176-ADA 

 JURY TRIAL DEMANDED 

FIRST AMENDED COMPLAINT FOR PATENT INFRINGEMENT 

Plaintiff Arcimoto, Inc. (“Arcimoto” or “Plaintiff”) files this complaint for patent 

infringement against Defendants Ayro Operating Company, Inc. and Ayro, Inc. (“Defendants”) 

and alleges as follows: 

THE PARTIES

1. Plaintiff Arcimoto is an Oregon corporation having a principal place of business at 

2034 W. 2nd Ave., Eugene, Oregon 97402. 

2. Upon information and belief, Defendant Ayro Operating Company, Inc. (“Ayro 

Operating”) is a Delaware corporation having a principal place of business at 900 E. Old Settlers 

Boulevard, Suite 100, Round Rock, Texas 78664 and a registered agent (Corporation Service 

Company dba CSC - Lawyers Incorporated) at 251 Little Falls Drive Wilmington, DE 19808. In 

addition, upon information and belief, Ayro Operating assembles its electric vehicles in Round 

Rock, Texas. See https://www.ayro.com/about/#media. 

3. Upon information and belief, in May 2019, AEV Techologies, Inc. became Ayro, 

Inc. See https://www.ayro.com/about/#media. 

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4. Upon information and belief, in May 2020, Ayro, Inc. became Ayro Operating and 

pursuant to an Agreement and Plan of Merger, dated December 19, 2019 (the “Merger 

Agreement”), merged with ABC Merger Sub, Inc. with Ayro Operating continuing after the 

merger as the surviving entity. See Exhibit 2 (Ayro, Inc. 10-Q for the quarter ended Sept. 30, 

2020). 

5. Upon information and belief, Defendant Ayro, Inc. (“Ayro”), formerly known as 

DropCar, Inc., is a Delaware corporation having a principal place of business at 900 E. Old Settlers 

Boulevard, Suite 100, Round Rock, Texas 78664 and a registered agent (Corporation Trust 

Company) at Corporation Trust Center 1209 Orange St., Wilmington, DE 19801 

6. Upon information and belief, in May 2020, pursuant to the Merger Agreement, 

Ayro Inc. became parent corporation to wholly-owned subsidiary Ayro Operating. 

JURISDICTION AND VENUE 

7. This is a civil action for patent infringement arising under the patent laws of the 

United States, 35 U.S.C. § 1 et seq. This Court has subject matter jurisdiction under 28 U.S.C. 

§§ 1331 and 1338(a). 

8. This Court has personal jurisdiction over Defendants. Upon information and belief, 

Defendants regularly conduct business within the State of Texas and this judicial district, including 

committing the acts of patent infringement, such as among other things, making, using, offering 

to sell and selling products that infringe the asserted patent and/or deriving substantial revenue 

from goods and services provided to individuals in Texas and in this District. 

9. Venue is proper in this district under 28 U.S.C. §§ 1391 and 1400(b), because, 

among other reasons, Defendants are subject to personal jurisdiction in this district and, upon 

information and belief, have committed acts of infringement and have regular and established 

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places of business in this judicial district, including at 900 E. Old Settlers Boulevard, Suite 100, 

Round Rock, Texas 78664. 

BACKGROUND 

10. Arcimoto was founded in 2007 with the mission to build products that catalyze the 

shift to a sustainable transportation system. Since 2007, Arcimoto has designed and built eight 

generations of vehicle prototypes as part of an iterative vehicle development program. Arcimoto 

aims to deliver meaningfully more efficient solutions to the market, at a fraction of the total cost 

of ownership of today’s cars. 

11. Arcimoto designs, develops, manufactures, and markets ultra-efficient threewheeled electric vehicles. An example of one of Arcimoto’s electric vehicles is shown below 

(https://www.arcimoto.com/vehicle/): 

12. Given the significant investment Arcimoto has made in its research and 

development, Arcimoto has applied for and obtained patents on its innovations, including the 

patent asserted herein, U.S. Patent No. 8,985,255 (“the ’255 patent”). Mark Frohnmayer—the 

President, Chief Executive Officer and Chairman of the Board of Directors since Arcimoto’s 

founding in 2007—is the first-named inventor on the ’255 patent. 

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13. Upon information and belief, Defendants offer an electric three-wheeled vehicle 

meeting the limitations of one or more claims of the ’255 patent. An example of one of 

Defendants’ three-wheeled electric vehicles, the “311” model, is shown below 

(https://www.ayro.com/ayro-311/): 

COUNT I 

PATENT INFRINGEMENT OF U.S. PATENT NO. 8,985,255 

14. Plaintiff incorporates and re-alleges each and every allegation of the foregoing 

paragraphs as though fully set forth herein. 

15. Plaintiff is the owner, by assignment, of the ’255 patent, entitled “Narrow Body 

Ultra Efficient Three Wheeled Electric Vehicle with Automotive Class Feel,” which issued on 

March 24, 2015. A true and correct copy of the ’255 patent is attached as Exhibit 1 and made a 

part hereof. 

16. The ’255 patent is valid, enforceable, and was duly issued in full compliance with 

Title 35 of the United States Code. 

17. Regarding the ’255 patent, Plaintiff has complied with the statutory notice 

provisions of 35 U.S.C. § 287. 

18. Defendants have at no time been licensed under the ’255 patent. 

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19. Defendants have directly infringed, and are currently infringing, literally and/or 

under the doctrine of equivalents, one or more claims of the ’255 patent, in violation of 35 U.S.C. 

§ 271(a), by making, using, selling, offering to sell in the United States, and/or importing into the 

United States products that embody one or more claims of the ’255 patent, including without 

limitation, Ayro’s “311” two-seater electric vehicles (the “Accused Products”). See Exhibit 2. 

20. The Accused Products include each and every limitation of one or more claims of 

the ’255 patent, including at least independent claim 10. An exemplary chart comparing claim 10 

of the ’255 patent to the Accused Products is attached as Exhibit 3. 

21. By way of example, independent claim 10 of the ’255 patent recites: 

A three-wheeled vehicle, comprising: 

a chassis having a front end and a rear end defining a longitudinal axis of the 

vehicle; 

three wheels coupled to the chassis, two of said three wheels being front wheels, 

and one of said three wheels being a rear wheel; 

a transmission for transmitting rotational energy to the front wheels; 

a motor, the center of mass of which is positioned between the center of mass of 

the transmission and the front end of the vehicle along the longitudinal axis 

of the vehicle; 

a battery, the center of mass of which is positioned between the transmission and 

the rear end of the vehicle along the longitudinal axis of the vehicle; 

two single-passenger seats, mounted to the chassis in tandem along a 

longitudinal axis of the vehicle, one of the seats being a driver’s seat and the 

other being a passenger seat; 

and a floor deck positioned vertically between the center of mass of the battery 

and the center of mass of the seats. 

22. Upon information and belief, Defendants have had knowledge of the ’255 patent 

at least as of the filing of the original Complaint (ECF No. 1) on March 6, 2020. Despite this 

knowledge of the ’255 patent, Defendants have continued to actively encourage their customers to 

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use the Accused Products so as to infringe the ’255 patent, at least through its web site, 

https://www.ayro.com/consumer/, and/or its sales representatives. Defendants continued to do so 

knowing and intending that their customers and other users commit the acts of infringement. 

Defendants also continued to make, use, offer for sale, sell, and/or import the Accused Products, 

despite their knowledge of the ’255 patent, thereby intending for and inducing their customers to 

infringe the ’255 patent in violation of 35 U.S.C. § 271(b). 

23. Plaintiff has been injured and damaged by Defendants’ infringement of the ’255 

patent. Plaintiff is entitled to damages for Defendants’ infringement, including lost profits and in 

no event damages less than a reasonable royalty. Defendants’ infringement has caused, and will 

continue to cause, irreparable harm to Plaintiff, for which Plaintiff has no adequate remedies at 

law, unless and until enjoined by this Court from further sale, offers for sale, importation, use, or 

the making of the Accused Products or other products within the scope of the claims of the ’255 

patent. 

WILLFUL INFRINGEMENT 

24. Plaintiff incorporates and re-alleges each and every allegation of the foregoing 

paragraphs as though fully set forth herein. 

25. Upon information and belief, Defendants have had knowledge of the ’255 patent at 

least as of the filing of the original Complaint (ECF No. 1) on March 6, 2020. Despite this 

knowledge, Defendants continued to infringe the ’255 patent by making, using, selling, offering 

for sale, and/or importing the Accused Products and is therefore liable for willful infringement. 

26. Defendants’ infringement of the ’255 patent is willful entitling Plaintiff to enhanced 

damages under 35 U.S.C. § 284. 

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PRAYER FOR RELIEF

WHEREFORE, Plaintiff prays for a judgment that: 

A. Defendants have infringed one or more claims of the ’255 patent, and such 

infringement is willful; 

B. Defendants, their officers, directors, employees, agents, subsidiaries, licensees, 

servants, successors and assigns, and any and all persons acting in privity or in concert or 

participation with Defendants, be enjoined from further infringement of the ’255 patent under 35 

U.S.C. § 283; 

C. Plaintiff be awarded all damages adequate to compensate Plaintiff for Defendants’ 

infringement of the ’255 patent, and such damages be trebled under 35 U.S.C. § 284 and awarded 

to Plaintiff, with interest; 

D. This case be adjudged an exceptional case under 35 U.S.C. § 285, and Plaintiff be 

awarded attorneys’ fees, costs, and all expenses incurred in this action; 

E. Plaintiff be awarded all actual and compensatory damages; and 

F. Plaintiff be awarded such other and further relief as the Court deems just and 

proper. 

JURY DEMAND

Pursuant to Rule 38 of the Federal Rules of Civil Procedure, Plaintiff demands a trial by 

jury on all issues triable by jury. 

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Dated: November 23, 2020 /s/ Jose C. Villarreal 

Jose Carlos Villarreal (SBN 24003113) 

JVillarreal@perkinscoie.com 

Shyamkrishna Palaiyanur (SBN 24104061) 

SPalaiyanur@perkinscoie.com 

PERKINS COIE LLP 

500 W. 2nd Street, Suite 1900 

Austin, Texas 78701 

Telephone: (737) 256-6100 

Renee E. Rothauge (pro hac vice) 

RRothauge@perkinscoie.com 

PERKINS COIE LLP 

1120 NW Couch Street, 10th Floor 

Portland, Oregon 97209 

Telephone: (503) 727-2000 

Gabrielle E. Bina (pro hac vice) 

GBina@perkinscoie.com 

PERKINS COIE LLP 

33 East Main Street, Suite 201 

Madison, Wisconsin 53703 

Telephone: (608) 663-7460 

Mark T. Smith (pro hac vice) 

MarkSmith@perkinscoie.com 

PERKINS COIE LLP 

131 S. Dearborn Street, Suite 1700 

Chicago, IL 60603-5559 

ATTORNEYS FOR PLAINTIFF, 

ARCIMOTO, INC.

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