Key Points
- Tesla sued Zhongyin Food Co., Ltd. for trademark infringement after the company began selling beer under the name “Tesla Beer.”
- The court found that Zhongyin had infringed on Tesla’s trademarks and ordered the company to stop selling the beer, pay Tesla a fine of ¥5 million ($690,000), and issue a public statement to correct the record.
- This is a victory for Tesla and a warning to other companies that try to use Tesla’s trademarks without permission. Tesla is serious about protecting its intellectual property and will not hesitate to take legal action against those who infringe on its rights.
- Tesla has been building a hardcore litigation team for several years and working to eliminate any misconceptions about its business that may come from misinformation or, in this case, another entity hoping to use its likeness to drive sales of a product.
Lawsuit
Tesla was successful in a trademark lawsuit in China over “Tesla Beer” after a company tried to use the company’s logo and play off of its name to sell products In this case, Tesla was successful in its lawsuit against Zhongyin for using the name “Tesla Beer” along with a logo that resembled Tesla’s branding. The court recognized Tesla’s claims of trademark infringement and unfair competition by Zhongyin.
Fine
As a result of the lawsuit, Zhongyin was ordered to cease its unfair competition behaviour and pay a fine of ¥5 million (approximately $690,000) to Tesla. Additionally, the company was required to issue a public statement regarding the matter. This legal action was taken by Tesla to protect its well-known logo, reputation, and brand identity as a prominent automaker in the electric vehicle industry.
In 2019, a series of Tesla-branded sodas and beer appeared in China, but these products were not officially associated with Tesla itself. Tesla had launched alcoholic beverages such as Tesla Tequila and Tesla Beer under its official business in various regions, including Europe.
Conclusion
Tesla’s proactive approach to legal matters, including building a strong litigation team, highlights the company’s dedication to preserving its brand image and addressing any potential misconceptions or unauthorized use of its branding. This case demonstrates Tesla’s commitment to safeguarding its trademarks and reputation in the market.
