Tesla Motors (TSLA) has run into trademark issues after it entered China’s market.
Tesla’s problems in China stem from a man named Zhan Baosheng. Zhan owns the right to the Tesla trademark in the country for both the Chinese and English word. The car manufacturer thought it had come to an agreement with Zhan that would allow it to use the Chinese word Te Si La, but now it’s being sued by him, reports Reuters.
The lawsuit from Zhan claims that the company infringed on his Tesla trademarks. He is seeking the shutdown of all showrooms and supercharging facilities in China and wants all sales in the country to stop. He is also seeking $3.85 million in compensation. The case will go to court on August 5, Reuters notes.
“We’ll be watching how China deals with this very closely,” Paul Haswell, a technology law partner in Hong Kong, told Newsday. “So-called trademark trolls watch western brand development and seek to register brands in China that are relatively well known in the rest of the world before they have any brand recognition in China, then use those trademarks as the brands expand into the East.
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