Tesla Motors plans on entering the Chinese market. Yet there are objections from a businessman who claims to have exclusive copyright ownership of the name of the company. Thus a trademark issue has cropped up and is dogging the steps of Tesla Motors.
Tesla’s Model S Sedan was all set to enter China when disaster struck. A man who says that he already owns rights to the name “Tesla” has caused the opening of a vehicle store in Beijing to come to an abrupt halt. The $70,000 car that is a luxury item part excellence awaits its launch in the Sino-verse. The showroom and the signs announcing the spanking new automobile are all there but the law is the law. Besides the trademark glitch, there is the process of full registration with the Chinese authorities. The Chinese GM of Tesla Motors was not available for any comments regarding the impasse.
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Zhan Baosheng is the businessman who already has a company by the name of Tesla Motors. Residing in Southern China, the trader had registered his company seven years ago. And the name was notified to the concerned authorities both in English and Chinese. While Zhan’s company appears to be a rip-off of the real Tesla Motors, in China it is hard to legally wrestle with issues of trademark rights. The law is not as prompt in its delivery of justice and the process of litigation is never smooth. Ultimately, the only way left for Tesla Motors to muscle its way out into the Chinese environment is to make Zhan an offer he can’t refuse. And that would have to be a financial way out of this conundrum that Tesla Motors finds itself in.