Overview

When the cases held Toyota was the world’s second-largest automobile manufacturer. Though
Toyota had a good command all over the world but struggling in China.
And their main competitor was Geely a Chinese automobile manufacturer, with the majority of
market shares Geely was expanding fast. At that time Geely was using Toyota’s engine (under a
contract) and fighting in the same market with Toyota.
Toyota found Geely’s logo similar to theirs. As a result, they filed a copyright violation suit in
Chinese court against them. But Beijing’s Second Intermediate Court rejected claims of alleged
copyright violation. 

Question 1
If this dispute tried in a neutral country which country’s law would apply? Japan, the
manufacturer’s country or China?

Answer1
When dispute crosses international borders and takes places in a neutral country’s court, both
parties want the law to apply from their own country. In most cases the party with the
strongest bargaining position has the final word.
In this case the business is being conducted in China by a Japanese brand Toyota. Here the
market situation, market share, business status of both parties took place in China. Toyota
entered the market knowing Chinese rules, so in this case if the dispute was tried in a neutral
country, China’s law would apply as they have good bargaining position.

Question 2
If the case were tried in U.S. or Japanese courts who do you think would win?

Answer2
Courts exist to do justice. If the courts are not biased in U.S. or Japan than they will follow their
nature of being neutral. And in both countries Geely will win over Toyota.

Toyota claimed that Geely copied their logo where there was no significant similarities. Geely’s
logo was rectangular with six rectangles colored boxes with black and blue color. On the other
hand Toyota’s logo was more of a mixture of circles, with no colored boxes.
Geely was using Toyota’s engine on a contract. Geely and Toyota were both trying to get more
market share, but Geely’s performance, service and price attracted the Chinese people over
Toyota. Geely was indeed using a part that belongs to Toyota but in the same market Toyotas
offerings couldn’t exceed Geely’s.
So the allegations were nothing but false to cover up Toyota’s failure in China.
Question 3
Draw up a brief agreement that would have eliminated the following problems before they
could occur.
A) Whose law applies for IP?
B) Whether the case should be tried in U.S. or Japan or Chinese courts of other countries?

Answer A: IP is intellectual property. Here Toyota claims that the Geely logo is copied from
them. In this case both the parties has their IP rights but as Toyota loses against Geely, Geely’s
law applies for IP.
Answer B: Courts are the place for justice. As the complaining party’s from Japan and Geely is
from China It became an international case. The case should have been tried in a neutral
country for a good image but i still believe the winner here will be Geely.

Question 4
From a “rights” point of view who is more likely to win?

Answer4
At the time when Toyota filed a copyright violation suit, world number two of that time wasn’t
making enough profit in the Chinese market. The reflection of profit and market share wasn’t
satisfying according to the amount of investment.
And there was a Chinese brand Geely who were providing cars at much cheaper rate, good
quality and service. The two companies were fighting in the same market, people knew about
the fame of Toyota and even Geely was using their engine but when the comparison took place
the people of China chose Geely.
At this kind of situations, most companies stops their operation at that country and moves to
another market but it would create a bad reputation for Toyota as world number two got
beaten by a Chinese auto manufacturing company.
And instinct says they will look for a safe way to get out of the market without ruining their
image in China.
After all these, I find Geely more favorable to win.

Conclusion and Opinions

Toyota and Geely’s case was a tough one. I would say Toyota was in favor of 40% and Geely
60% but when a company uses their rival’s parts and still beats them in market share and stuff,
than I would say at that time Geely might have a really good quality of manufacturing. On the
other hand Toyota’s logo doesn’t really matches with Geely’s, the thing might be said similar is
shapes but rectangular and circle these are universal and still there are much contrast between the
logos. I find BMW logo more similar with Geely’s than Toyota and for me Geely’s the right
party in this case.