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June 4, 2016

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Copyright focus in lawsuit over SUVs

JAGUAR Land Rover is suing Chinese automaker Jiangling Motor for allegedly copying the UK firm’s Range Rover Evoque, a person with direct knowledge of the matter said — a rare move by a foreign automaker to fight copycats in the world’s biggest auto market.

A spokesman for JLR, owned by India’s Tata Motors, said in brief e-mailed comments to Reuters that a court in Beijing’s eastern Chaoyang District “served Jiangling with newly filed actions surrounding copyright and unfair competition.” He declined to elaborate.

The suit relates to Jiangling’s Landwind X7 sport-utility vehicle copying the design of the Evoque, JLR’s first China-made model that went on sale last year, said the person with knowledge of the legal proceedings, who is not authorised to talk to the media and didn’t want to be named.

A spokesman for Jiangling declined to comment.

Global automakers generally don’t take legal action in China against copying as they feel the odds of winning against local firms are low.

Also, a lawsuit can be bad for branding if the Chinese public think a foreign company is bullying domestic competitors.

If JLR wins its case, it could prompt other automakers to also take legal action, said Chen Jihong, a Beijing-based lawyer at Zhong Lun Law Firm, speeding up a shift to stronger enforcement of intellectual property rights.

Landwind unveiled a new version of its X7 SUV in November 2014, drawing criticism for its striking likeness to the Evoque, an imported version of which was already on sale in China.

The two SUVs have a similar shape, with the roof and windows tapering from front to back, and near identical tail lights and character lines on the side panelling. The X7’s front grille is slightly more rounded than the hard edges of the Evoque.

The slight differences between the two cars can be virtually eliminated using widely available kits that allow a Range Rover grille, logo and Land Rover badges to be put on an X7. Kits on Alibaba’s Taobao shopping website cost around 128 yuan (US$19.43).

The X7 costs around a third of the price of an Evoque.

JLR and Jiangling have agreed that Landwind will not sell the X7 in Brazil, the source said, where it recently appointed an importer.

The two automakers are also discussing what Landwind can and can’t do in any X7 design update, the person said.


 

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