Autoblog

BMW 'astonished' after losing intellectual property case

Jonathon Ramsey — Mon, 30 Jul 2012 08:01:00 EST

Filed under: Government/Legal, BMW, Design/Style

BMW has been tussling in courtrooms with a South African auto parts supplier called Grandmark for 13 years. The real issue revolves, of course, around money, but the legal issue revolves around intellectual property rights regarding the design of car parts. South Africa allows entities to register an "Aesthetic Design" (AD) that "is new and original, and that has features which 'appeal to and are judged solely by the eye';" BMW has received Aesthetic Design registrations for both its vehicles and the parts, and so argues that Grandmark's manufacture of identical replacement parts infringes on its intellectual property re: the AD registration.

BMW won a court order 12 years ago against Grandmark over replacement hood, headlight, grille and front fender designs, but Grandmark appealed, arguing that the AD registration for such components is ultimately invalid - that BMW can't claim a particular AD intellectual property for product shapes like headlights and fenders because parts they "are not judged visually but are dictated by function," as opposed to the overall shape of the car (which BMW also registers). A bit of clarity: South Africa also allows for the registration of Functional Design, but car parts are specifically excluded - that's why BMW registers parts under the AD provisions. The larger picture to all of this is that if Grandmark won, it would officially open the door to generic replacement car parts in this market.

After having been at this since the last millennium, the Gauteng North High Court has finally ruled in favor of Grandmark. The judge opined that car parts must be considered separately from the entire car, and says BMW needed to explain the "novel and aesthetic features" of the individual parts to uphold its claim to IP rights, which the judge felt BMW didn't do. It was the judge's opinion that the parts in question have "no features that will or may influence the choice or selection or have some individual characteristics which are calculated to attract the attention of the beholder."

BMW was naturally dismayed by the ruling, and has said it will study it closely before deciding what to do next.

BMW 'astonished' after losing intellectual property case originally appeared on Autoblog on Mon, 30 Jul 2012 08:01:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Report: Counterfeit parts overwhelm China, include fake airbags, oil seals

Zach Bowman — Wed, 16 Feb 2011 07:58:00 EST

Filed under: Aftermarket, China, Government/Legal

According to Automotive News China, the shady side of the People's Republic is set to sell $45 billion worth of counterfeit auto parts this year. Those include high-volume pieces like spark plugs, brake pads and steering components as well as oil seals and airbags. All told, the report says that China is responsible for a hefty 83 percent of the world's counterfeit parts, leading the top three producers by a wide margin. The report goes on to state that Taiwan and Thailand are responsible for five percent of the pie each, while Japan and Malaysia weigh in with two percent each of the counterfeit market.

In many cases, authorities are ill-equipped to handle the sheer volume of rip-off artists. In one instance, a facility that produces knock-off oil seals gets shut down once a year only to re-open at full capacity. That plant had the capacity to produce seven million fake oil seals per year in 2008. Now that number is up to 10 million.

In the case of the seals, the manufacturer uses low-grade rubber and metal to cut costs, and as a result, the fake pieces carry a price tag that's less than half of the genuine article. They're also almost guaranteed to fail.

Meanwhile, legitimate Chinese companies are beginning to fit their boxes with radio frequency ID tags to distinguish their products from the fakes.

[Source: Automotive News China - Sub. Req.]

Report: Counterfeit parts overwhelm China, include fake airbags, oil seals originally appeared on Autoblog on Wed, 16 Feb 2011 07:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REPORT: U.S. psyched as China decides to cut auto part tariffs

Jonathon Ramsey — Mon, 31 Aug 2009 15:31:00 EST

Filed under: China, Europe, Government/Legal, Canada

Chinese-market 2010 Buick Regal - Click above for high-res image gallery

China joined the World Trade Organization in 2001, at which point it was given five years to adjust to the rules of open trade before any complaints were lodged against it. On schedule, in 2006, the complaints began, lodged by the U.S., Europe, and Canada.

In one example of open trade prohibitive practices, Automotive News reports that if a car built in China uses a percentage of imported auto parts above a specific threshold, China taxes each imported part an additional 25%. In such a price-competitive atmosphere, such a policy all but proscribes the use of imported parts, a move that has lead to complaints from all three continents.

The original complaint was decided at the end of last year in a ruling against China. Beijing appealed, to no avail. In response, China has rescinded the tax, which is an initial step to truly opening the market up for foreign parts- and automakers.

The U.S. trade in auto parts to China is not even 1/13th what it is to Mexico, a statistic that a host of companies would clearly like to change.

Gallery: 2009 Chinese-spec Buick Regal

[Source: Automotive News, sub req'd]

REPORT: U.S. psyched as China decides to cut auto part tariffs originally appeared on Autoblog on Mon, 31 Aug 2009 15:31:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Turnaround expert: Auto parts sector is a "very, very troubled industry"

Eric Bryant — Fri, 23 Jun 2006 16:59:00 EST

Filed under: Trends, Plants/Manufacturing, Earnings/Financials

Al Koch helped see over the revival of Kmart, so he knows a thing or two about financial difficulty - and that's exactly what he sees in the auto-part industry. Koch specially mentions decreasing production from domestic automakers as potentially causing severe trouble. While a move away from incentives has increased the profitability of the Big Three, it puts the squeeze on suppliers by decreasing production (you can bet that none of that profit makes its way down the supply chain). The loss of cash flow is particularly hazardous to those who have made substantial capital and R&D investments - not the sort of businesses that the industry wants to see struggling.

One potentially good shred of news is that capital is still easy to obtain, so that those suppliers who wish to borrow money can still do so. Conditions could also improve if gas prices fall or if the domestic automakers manage to stabilize their market share. A relatively painless resolution of the Delphi situation would also be viewed as a positive sign for the segment.

[Source: Houston Chronicle]

Turnaround expert: Auto parts sector is a "very, very troubled industry" originally appeared on Autoblog on Fri, 23 Jun 2006 16:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Mazda develops another use for corn - bioplastic

Stuart Waterman — Fri, 12 May 2006 11:34:00 EST

Filed under: Green, Japan, Plants/Manufacturing, Technology

Mazda Motor Corp. and an industrial consortium are partnering with the Japanese government and the academic community to develop a new bioplastic made through a fermentation process using natural materials such as fermented starches and sugars derived from corn.

Not only is the new bioplastic carbon-neutral (with only 12 percent petroleum content and reduced energy requirements for manufacture) but it is stronger and more heat-resistant than other bioplastics, making it a viable candidate for a wider range of automotive applications.

The prototype bioplastic is made of 88 percent corn and 12 percent petroleum, and requires 30 percent less energy to produce than conventional petroleum-based polypropylene plastics. Its higher rigidity may make it a superior material to polypropylene plastics for mass production of injection molded parts, like the complex shape shown at right.

According to Mazda, the Hiroshima-based research effort has greatly benefited from the region's fermentation expertise, based on its rich tradition of sake brewing...

[Source: Mazda] Thanks for the tip, amp!

Mazda develops another use for corn - bioplastic originally appeared on Autoblog on Fri, 12 May 2006 11:34:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

GM draws the line at helping Delphi

Stuart Waterman — Mon, 01 May 2006 17:29:00 EST

Filed under: Trends, GM, Earnings/Financials

While most observers in the slow-motion Delphi bankruptcy train wreck assume that General Motors will step in to help bail out its struggling former subsidiary company (and its ex-GM workers), apparently there are limits to GM's largesse.

In the latest development, Delphi reports that it was unable to persuade GM to forego planned price reductions in Delphi's supply contracts to its biggest customer. Delphi says the contracts are unprofitable, and has said that it wants to renegotiate the contracts or get out of them entirely.

GM had agreed to delay imposing the agreed-upon lower prices for the first quarter of the year to take some of the pressure off Delphi, but now wants Delphi to start living up to its contracts.

[Source: Reuters]

GM draws the line at helping Delphi originally appeared on Autoblog on Mon, 01 May 2006 17:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments