High stakes on the water: Patent innovation and disputes of the America’s Cup

Article  \  25 Oct 2024

The America's Cup is one of the oldest and most prestigious sailing competitions, attracting a global audience and known for its nail-biting races. Since 1851, the competition has been a breeding ground for cutting-edge technology, with an emphasis on innovation, particularly in yacht design and technology.

Legal disputes have occasionally emerged around the America's Cup, particularly concerning patents related to yacht design. The most famous example involved the "winged keel" of Australia II, which won the Cup in 1983, breaking the US dominance that had lasted for over a century.

The revolutionary keel design, patented by Ben Lexcen, sparked debate about whether it gave an unfair advantage, though the design was ultimately allowed.  The winged keel was kept under tight security, covered with tarpaulins each time the boat was out of the water. Competitors allegedly used scuba divers to try and get a glimpse of what was below the waterline in the days leading up to the regatta. Little did they know, the patent had been published by the Dutch Patent Office six months before the regatta and included a complete set of engineering drawings of the keel.

In more recent years, disputes have arisen over advanced technologies such as hydrofoils and sail designs, with teams seeking patent protections for their innovations. Teams have also clashed in court over interpretations of the Cup's Deed of Gift, the governing document, and rules on yacht specifications. Legal challenges often focus on the fine line between innovation and unfair competition, with courts sometimes stepping in to resolve intellectual property and race rules disputes.

Over the years, the rules of the America's Cup have included prohibitions for competitors to be able to sue each other for patent infringement. But that has not stopped "others" from becoming patent owners then to chase America's cup syndicates for patent infringement. 

AJ Park has been involved in many America's cup patent disputes dating back to 2002 in Auckland where the patent for a keel configuration was being waved around by a third party. We managed to challenge this patent long enough for the regatta to be completed.

It's understandable why, with teams investing heavily in cutting-edge innovations, patents have become critical in protecting these technological advancements. Some notable examples include:

  • Hydrofoil technology: As hydrofoils have become a dominant feature in America's Cup yachts, there have been patent disputes over various designs. Teams have filed patents to protect their unique foil shapes, control systems, and wing sails. These disputes sometimes arise when competitors claim infringement or challenge the validity of patents to avoid legal restrictions on their designs.
  • Oracle Team USA vs. Team New Zealand (2013): Ahead of the 2013 America's Cup, Team New Zealand and Oracle Team USA had a conflict over hydrofoil technology. Both teams developed systems that allowed boats to rise out of the water at high speeds. There were concerns over patent infringements, but the dispute never escalated into a legal battle, as teams focused on competition rather than litigation.
  • AC75 Class Yachts (2021): The AC75 yachts introduced for the 2021 America's Cup featured advanced designs, including complex canting systems and foil control mechanisms. Multiple patents were filed related to these innovations, and teams remained vigilant about protecting their intellectual property. Legal concerns over patent violations were discussed, but no major public disputes emerged.

While America's Cup teams are careful to file patents to protect their innovations, they also try to avoid protracted legal battles that could distract from racing. Most disputes tend to be resolved quietly or through negotiation.

To secure strong patent protection for your innovation or design, get in touch with one of our experts.