GM and Chery Settled Their IPR Disputes

In November 2005, US-based auto giant General Motors (GM) and Chinese automaker Chery Automobile (Chery) have finally settled their intellectual property right disputes after fighting for three years.

On November 19, in a jointly hosted press conference, the two companies announced they have reached a settlement agreement to end their IPR disputes.

At the end of 2004, GM filed an unfair competition lawsuit against Chery, for pirating "Matiz", a mini car model developed by GM's South Korean affiliate Daewoo Motor, with the Shanghai No. 2 Intermediate People's Court.

GM's joint venture in China began producing the "Matiz" model cars under license from Daewoo and renamed the model as "Spark" at the end of 2002. GM alleged that Chery's mini car model "QQ" copied the design of Spark, stating that the two models "shared remarkably identical body structure, exterior design, interior design and key components".

Before initiation of legal proceedings, GM filed a complaint with the central government alleging the infringement. However, the complaint was dismissed on the ground that GM did not have any registered right over the design of the model.

According to the statement, the two parties appreciate the mediation efforts made by the Chinese government in this regard. However, no details of the agreement were disclosed.