China Automobile Exporting Businesses Must Pass IP Test
September 22, 2003Many core technologies utilized in Chinese automobiles have been originally derived from foreign companies. Currently in China, there are only a few brand name automobiles that are completely made by domestic manufactures. The excessive reliance of the Chinese on foreign technologies and brand name recognition could possibly lead to a variety of dilemmas concerning intellectual property rights. At present, the automobile manufactures in the international market have not used IP as a weapon against the Chinese domestic manufactures. However, in the long run, it remains to be seen if the issue of IP rights will become a problem for Chinese manufactures.
Currently, a few Chinese domestic automobile manufactures are facing lawsuits concerning intellectual property rights. These cases include the Japanese Toyota Company vs. Jili Automobile Company lawsuit for trademark infringement and the GM investigation of Cherry Automobile for design infringement. As the above mentioned Chinese companies are realizing, as they enter the foreign markets their products are subject to much more scrutiny and IP rights become a more pertinent issue. Therefore, if China is not able to control IP issues with its developing industries it will find itself facing many problems in the future.
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