Golden bike maker sues Gates Corp. over unpaid royalties for bike frame invention

August 16, 2024

In 2008, Spot Brands and Gates Corp. inked a licensing and royalty agreement that gave half of the Drop-Out invention to Gates so it could license the technology to other bike manufacturers. Gates said it would protect the patent on the design and pay Spot 8% of its net sales of any products sold by bike companies who licensed the Drop-Out design.

A couple weeks ago Spot sued Gates Corp., saying the Denver-based company has not paid any royalties while the company has expanded its belt technology into more than 1,000 bike models. The lawsuit says Spot is owed “millions of dollars in unpaid royalties.” Colorado Sun