Mercedes-Benz and Chery Agree on Use of “EQ” Trademark
It was reported that Chery has reached an agreement with Mercedes-Benz on their trademark dispute, allowing each other to continue their respective use of “eQ” and “EQ”. Mercedes has promised to acknowledge Chery’s eQ brand and products in the global market while gaining access for its “EQ” trademark to China.
Chery launched its eQ electric vehicle in 2014 and applied for registration of the subject trademark in Class 12 and 37 in Dec 2016. The application is still in the registration process at the moment.
On the other hand, Mercedes publicized last year its new electric vehicle under the sub brand EQ, for whose protection on designated goods including vehicles in Class 12, it requested territorial extension from January to April 2017.
Subsequently, Chery filed for arbitration to the China Trademark Office against Mercedes for infringing the former’s prior rights on “eQ” with the trademark filing, as Mercedes was also trying to register “EQ” on new energy vehicles.
Regardless of Mercedes’s influence as an international enterprise, it could not have moved any further in the face of Chery who had previously registered “eQ”. That is a main reason why it rushed into settlement with Chery over the dispute. Meanwhile, Chery faces a dim future as it marches towards the global market with its new-energy eQ vehicles. As we could see through research in WIPO’s database, it did not yet register the trademark overseas while its rival had filed for registration in July 8, 2016 in the UK before it actively sought territorial extension around the globe.
Trademark disputes use time and energy which are supposed to be invested in the main business, especially when the industry of new-energy vehicles is rapidly developing in today’s world. The agreement reached by both parties may be an expedient considering that neither of their trademark strategies is impeccable. Still, it is a good idea for Chery and Mercedes, who target different markets, to take a step back and reconcile with each other as long as everyone is satisfied in the end. That is what we can call a win-win situation.
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