If proceedings continue to head in that direction, it might cost Gates tens of millions.<\/p>\n
A Bit of Background<\/h2>\n\n![\"Cannondale](\"https:\/\/bikerumor.com\/wp-content\/uploads\/2025\/11\/Cannondale-FlyingV-eBike-Commuter-belt-drive.jpeg\")
<\/a><\/figure>(Photo\/Cannondale)<\/figcaption><\/figure>\nOkay, so this story dates back to 2008\u2013not the lawsuit, but the story. Gates Corp. debuted its carbon belt-drive system that year, promising to revolutionize the bike industry. <\/p>\n
However, there was a problem. No, it wasn\u2019t the fact that for a hundred years bikes had been dominated by chain-driven drivetrains. The issue was how frames are designed.<\/p>\n
Bike frames have a solid rear triangle, and a belt needs to pass through it. Obviously, with a chain, there is no issue, since a link can simply pop apart and be reassembled. This isn\u2019t the case with Gates\u2019 new carbon belts.<\/p>\n
So, Spot came up with a solution, creating the appropriately named \u201cDrop-Out.\u201d Essentially, the dropout area of the rear triangle separates, allowing the belt to slide over the chain\u2013uh, beltstay(?). <\/p>\n\n![\"Spot](\"https:\/\/bikerumor.com\/wp-content\/uploads\/2026\/02\/Spot-Bikes-dropout.png\")
<\/a><\/figure>Spot’s current “Kobe Slider 3” dropout (Photo\/Spot Bikes)<\/figcaption><\/figure>\nSpot struck up a deal with Gates, allowing the belt-drive giant to license the technology to other frame manufacturers. In return, Gates promised to pay Spot a royalty on profits related to companies licensing the Drop-Out design from Gates.<\/p>\n
Well, apparently, Gates never paid up. And, the numbers are pretty big. By 2011, 54 brands used a belt drive on almost 100 different models. By the time Spot filed a lawsuit in 2024, 1,000 bike models from 135 brands were equipped with the belt-drive system.<\/p>\n
And, according to their original agreement, Spot says they are owed 8% on all of these. Adding the sales up over nearly 20 years, it is a significant chunk of change.<\/p>\n
Recent Court Rulings<\/h2>\n\n![\"Spot](\"https:\/\/bikerumor.com\/wp-content\/uploads\/2023\/01\/Spot-Ryve-115-v2-trail-mountain-bike-details-5-800x593.jpg\")
<\/a><\/figure>(Photo\/Spot Bikes)<\/figcaption><\/figure>\nA Colorado judge\u2019s decision on February 17th denied Gates Corp.\u2019s attempt to countersue Spot. This ruling follows a September ruling, also against Gates, that claimed Spot\u2019s design and patent on the Drop-Out was \u201cinvalid.\u201d<\/p>\n
Now, a jury of their peers will hear the dispute between the two bike brands. Both previous rulings, in favor of Spot, mean that lawyers on both sides will now look to schedule a trial. <\/p>\n
Currently, Gates is attempting to appeal to a higher court, seeking to have the case bumped from the state to the federal level. However, the judge doesn\u2019t want to delay the proceedings longer. <\/p>\n
Perhaps these two will be in a courtroom sooner than later.<\/p>\n
The post Apparently, Gates Belt-Drive May Owe Spot Bikes Millions in Unpaid Royalties\u00a0<\/a> appeared first on Bikerumor<\/a>.<\/p>\n
<\/a><\/figure>Okay, so this story dates back to 2008\u2013not the lawsuit, but the story. Gates Corp. debuted its carbon belt-drive system that year, promising to revolutionize the bike industry. <\/p>\n
However, there was a problem. No, it wasn\u2019t the fact that for a hundred years bikes had been dominated by chain-driven drivetrains. The issue was how frames are designed.<\/p>\n
Bike frames have a solid rear triangle, and a belt needs to pass through it. Obviously, with a chain, there is no issue, since a link can simply pop apart and be reassembled. This isn\u2019t the case with Gates\u2019 new carbon belts.<\/p>\n
So, Spot came up with a solution, creating the appropriately named \u201cDrop-Out.\u201d Essentially, the dropout area of the rear triangle separates, allowing the belt to slide over the chain\u2013uh, beltstay(?). <\/p>\n Spot struck up a deal with Gates, allowing the belt-drive giant to license the technology to other frame manufacturers. In return, Gates promised to pay Spot a royalty on profits related to companies licensing the Drop-Out design from Gates.<\/p>\n Well, apparently, Gates never paid up. And, the numbers are pretty big. By 2011, 54 brands used a belt drive on almost 100 different models. By the time Spot filed a lawsuit in 2024, 1,000 bike models from 135 brands were equipped with the belt-drive system.<\/p>\n And, according to their original agreement, Spot says they are owed 8% on all of these. Adding the sales up over nearly 20 years, it is a significant chunk of change.<\/p>\n A Colorado judge\u2019s decision on February 17th denied Gates Corp.\u2019s attempt to countersue Spot. This ruling follows a September ruling, also against Gates, that claimed Spot\u2019s design and patent on the Drop-Out was \u201cinvalid.\u201d<\/p>\n Now, a jury of their peers will hear the dispute between the two bike brands. Both previous rulings, in favor of Spot, mean that lawyers on both sides will now look to schedule a trial. <\/p>\n Currently, Gates is attempting to appeal to a higher court, seeking to have the case bumped from the state to the federal level. However, the judge doesn\u2019t want to delay the proceedings longer. <\/p>\n Perhaps these two will be in a courtroom sooner than later.<\/p>\n The post Apparently, Gates Belt-Drive May Owe Spot Bikes Millions in Unpaid Royalties\u00a0<\/a> appeared first on Bikerumor<\/a>.<\/p>\n<\/a><\/figure>Recent Court Rulings<\/h2>\n
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