Tesla has secured another legal victory in China, this time involving an intellectual property lawsuit against a company bearing a name that was remarkably similar to theirs. The case revolved around trademark infringement, copyright violations, and unfair competition.
Tesla launched the legal battle when it discovered a company by the name of Tesila Used Car (Guangzhou) Co., Ltd. The defendant asserted that their name was an objective description of their services. However the court noted the defendant not only displayed identical or similar logos on its signage but also extensively utilized them within the store premises and promotional materials.
Tesla argued this approach left no room for doubt that the logos served the function of identifying the source of the services, thereby establishing a clear case of trademark use. (via Mondaq)
The court agreed with Tesla, stating in their ruling that the defendant’s use of the name extended beyond mere description, constituting trademark use and thus infringing upon Tesla’s exclusive rights. The court awarded the automaker compensation of ¥300,000 (C$56,000/US$41,000).
The judgment extended beyond trademark infringement. The court ruled the defendant’s unauthorized use of the Tesla T logo on its signage, decorations, and promotional materials violated Tesla’s copyright. Additionally, the court said the defendant attempted to exploit Tesla’s reputation for its own benefit, painting a picture of affiliation with Tesla, leading to confusion and misleading the public.
This is the second legal victory for Tesla in China this month. The company was also on the winning end of a trademark infringement lawsuit against a company in China that was selling ‘Tesila Beer’ and ‘Tesila Soda.’
