Toyota Loses Trademark Suit
Taken From IHT.com
BEIJING Toyota Motor on Monday lost a trademark lawsuit against Geely Group, China's biggest private carmaker, in a case that had been closely watched by overseas companies concerned about protecting their designs and logos in the mainland market.
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Toyota is "very disappointed" by the verdict after presenting evidence to a Beijing court showing that Geely's Merrie Cars had a logo on the hood, hub cabs, steering column and trunk that resembled Toyota's "T" icon, said Shi Yusheng, a lawyer for Toyota.
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Toyota's China spokeswoman said the company would weigh its next step.
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"We regret that our viewpoint was not accepted by the court," the spokeswoman, Yang Hongjian, said in a written response to questions from Bloomberg. "We will decide how to proceed after a carefully analysis of the verdict."
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The court decision came a setback for other automakers, including General Motors, which has said it is "investigating" whether Chery Automobile's QQ minicar resembles the Chevrolet Spark.
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Peter So, head of China research at ING Groep, said such cases were difficult for plaintiffs.
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"Copyright lawsuits aren't easy to win, and that is not just in China," So said. "Even with the ruling today, do foreign automakers have a choice? Can they choose not to come to China?"
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Wang Zhong, a lawyer for Geely, called the verdict "fair" and "objective."
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Geely, a 17-year-old company based in the eastern province of Zhejiang, started out as a maker of refrigerator parts and switched to making cars in 1999. It has produced about 70,000 passenger cars since then and seeks to make 100,000 cars this year, tripling that number to 300,000 by 2005.
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Despite the verdict, Toyota, Japan's largest automaker and the world's third-biggest carmaker, plans to invest $2.5 billion in China by 2010.
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Toyota was ordered to pay 80,360 yuan, or $9,700, in court costs by the Beijing Intermediate Court. If the company wants to appeal the verdict, it must do so within 30 days, the court said.
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Shi, the Toyota lawyer, added: "The main judgment is not in line with the facts that we provided to the court. As long as there is the possibility that consumers can mistake Geely's logo for Toyota's trademark, it should be taken as a violation of Toyota's rights."
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Overseas carmakers are stepping up efforts to protect their designs and trademarks in China, where vehicle sales are forecast to increase by at least a third this year, according to government estimates.
.
"There have been consistent rumors that QQ looks like the Spark and we are in the process of investigating it," the chairman of General Motors China, Phil Murtaugh, said last week.
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Chery's marketing manager, Sun Yong, said in April that the company had "adapted" successful designs from abroad to help it bolster sales in China.
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The U.S. deputy trade representative, Josette Shiner, said last week that China had pledged to adopt a "zero-tolerance" policy toward piracy of trademarks and intellectual property.
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Other foreign carmakers in China include Nissan Motor. "This is not good for the protection of intellectual property rights in China," said Katsumi Nakamura, president of Dongfeng Motor, Nissan's venture in China.
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Bloomberg News
< < Back to Start of Article BEIJING Toyota Motor on Monday lost a trademark lawsuit against Geely Group, China's biggest private carmaker, in a case that had been closely watched by overseas companies concerned about protecting their designs and logos in the mainland market.
.
Toyota is "very disappointed" by the verdict after presenting evidence to a Beijing court showing that Geely's Merrie Cars had a logo on the hood, hub cabs, steering column and trunk that resembled Toyota's "T" icon, said Shi Yusheng, a lawyer for Toyota.
.
Toyota's China spokeswoman said the company would weigh its next step.
.
"We regret that our viewpoint was not accepted by the court," the spokeswoman, Yang Hongjian, said in a written response to questions from Bloomberg. "We will decide how to proceed after a carefully analysis of the verdict."
.
The court decision came a setback for other automakers, including General Motors, which has said it is "investigating" whether Chery Automobile's QQ minicar resembles the Chevrolet Spark.
.
Peter So, head of China research at ING Groep, said such cases were difficult for plaintiffs.
.
"Copyright lawsuits aren't easy to win, and that is not just in China," So said. "Even with the ruling today, do foreign automakers have a choice? Can they choose not to come to China?"
.
Wang Zhong, a lawyer for Geely, called the verdict "fair" and "objective."
.
Geely, a 17-year-old company based in the eastern province of Zhejiang, started out as a maker of refrigerator parts and switched to making cars in 1999. It has produced about 70,000 passenger cars since then and seeks to make 100,000 cars this year, tripling that number to 300,000 by 2005.
.
Despite the verdict, Toyota, Japan's largest automaker and the world's third-biggest carmaker, plans to invest $2.5 billion in China by 2010.
.
Toyota was ordered to pay 80,360 yuan, or $9,700, in court costs by the Beijing Intermediate Court. If the company wants to appeal the verdict, it must do so within 30 days, the court said.
.
Shi, the Toyota lawyer, added: "The main judgment is not in line with the facts that we provided to the court. As long as there is the possibility that consumers can mistake Geely's logo for Toyota's trademark, it should be taken as a violation of Toyota's rights."
.
Overseas carmakers are stepping up efforts to protect their designs and trademarks in China, where vehicle sales are forecast to increase by at least a third this year, according to government estimates.
.
"There have been consistent rumors that QQ looks like the Spark and we are in the process of investigating it," the chairman of General Motors China, Phil Murtaugh, said last week.
.
Chery's marketing manager, Sun Yong, said in April that the company had "adapted" successful designs from abroad to help it bolster sales in China.
.
The U.S. deputy trade representative, Josette Shiner, said last week that China had pledged to adopt a "zero-tolerance" policy toward piracy of trademarks and intellectual property.
.
Other foreign carmakers in China include Nissan Motor. "This is not good for the protection of intellectual property rights in China," said Katsumi Nakamura, president of Dongfeng Motor, Nissan's venture in China.
.
Bloomberg News BEIJING Toyota Motor on Monday lost a trademark lawsuit against Geely Group, China's biggest private carmaker, in a case that had been closely watched by overseas companies concerned about protecting their designs and logos in the mainland market.
.
Toyota is "very disappointed" by the verdict after presenting evidence to a Beijing court showing that Geely's Merrie Cars had a logo on the hood, hub cabs, steering column and trunk that resembled Toyota's "T" icon, said Shi Yusheng, a lawyer for Toyota.
.
Toyota's China spokeswoman said the company would weigh its next step.
.
"We regret that our viewpoint was not accepted by the court," the spokeswoman, Yang Hongjian, said in a written response to questions from Bloomberg. "We will decide how to proceed after a carefully analysis of the verdict."
.
The court decision came a setback for other automakers, including General Motors, which has said it is "investigating" whether Chery Automobile's QQ minicar resembles the Chevrolet Spark.
.
Peter So, head of China research at ING Groep, said such cases were difficult for plaintiffs.
.
"Copyright lawsuits aren't easy to win, and that is not just in China," So said. "Even with the ruling today, do foreign automakers have a choice? Can they choose not to come to China?"
.
Wang Zhong, a lawyer for Geely, called the verdict "fair" and "objective."
.
Geely, a 17-year-old company based in the eastern province of Zhejiang, started out as a maker of refrigerator parts and switched to making cars in 1999. It has produced about 70,000 passenger cars since then and seeks to make 100,000 cars this year, tripling that number to 300,000 by 2005.
.
Despite the verdict, Toyota, Japan's largest automaker and the world's third-biggest carmaker, plans to invest $2.5 billion in China by 2010.
.
Toyota was ordered to pay 80,360 yuan, or $9,700, in court costs by the Beijing Intermediate Court. If the company wants to appeal the verdict, it must do so within 30 days, the court said.
.
Shi, the Toyota lawyer, added: "The main judgment is not in line with the facts that we provided to the court. As long as there is the possibility that consumers can mistake Geely's logo for Toyota's trademark, it should be taken as a violation of Toyota's rights."
.
Overseas carmakers are stepping up efforts to protect their designs and trademarks in China, where vehicle sales are forecast to increase by at least a third this year, according to government estimates.
.
"There have been consistent rumors that QQ looks like the Spark and we are in the process of investigating it," the chairman of General Motors China, Phil Murtaugh, said last week.
.
Chery's marketing manager, Sun Yong, said in April that the company had "adapted" successful designs from abroad to help it bolster sales in China.
.
The U.S. deputy trade representative, Josette Shiner, said last week that China had pledged to adopt a "zero-tolerance" policy toward piracy of trademarks and intellectual property.
.
Other foreign carmakers in China include Nissan Motor. "This is not good for the protection of intellectual property rights in China," said Katsumi Nakamura, president of Dongfeng Motor, Nissan's venture in China.
.
) i saw a lawsuit that Toyota filed on the Geely Group, for using a VERY similar logo...
