Li Auto Clarifies Reasons Behind Lawsuit Against Auto Film Store with Same Chinese Name

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Li Auto, the Chinese electric vehicle manufacturer, has provided further explanation regarding its lawsuit against an auto film store that shares the same Chinese name. The company stated that it respects the fair use of the term “Li Xiang” by other companies and has no intention of taking legal action against those using the term reasonably. However, the auto film store in question was found to be impersonating Li Auto for commercial activities, including sales and group purchases. Local car owners reported the impersonation to the company, prompting Li Auto to take legal action to defend its rights and address consumer confusion caused by the impersonation.

Li Auto emphasized that the lawsuit is not merely a case of ordinary trademark infringement, and it is confident that the court will make a fair judgment based on the evidence submitted. Over the weekend, media reports revealed that Li Auto was claiming 1.2 million yuan ($167,000) for trademark infringement and unfair competition against the auto film store located in Linyi, Shandong province.

The auto film store, established in 2012, includes “Li Xiang” in its name as it was the childhood name of the store’s owner, Mr. Zhu. However, the store sells products unrelated to Li Auto, and Mr. Zhu expressed confusion over the claim made against his business.

Li Auto, operating under the Chinese name “理想,” was established in July 2015 and applied for the registration of related Chinese trademarks in May 2018. It is noteworthy that data from Qichacha, a data provider, indicates that there are more than 90,000 companies registered in China with the Chinese term “Li Xiang” in their names.