U.S electric car maker, Tesla Motors Inc. (NASDAQ:TSLA), has amicably resolved its trademark standoff in China, as Reuters reported. Consequently eliminating a standoff that had threatened to halt the company’s expansion plans in the world’s largest auto market. Tesla has been engaged in a tussle with Chinese Businessman, Zhan Baosheng, who is reported to have registered the Tesla trademark before the Palo Alto California based company.
“Tesla Motors Inc. (NASDAQ:TSLA) has successfully concluded an agreement with Mr. Zhan Baosheng, to completely and amicably resolve the dispute between the parties,” Tesla said in a statement cited by Reuters. “These actions remove any doubt with respect to Tesla’s undisputed rights to its trademarks in China.”
Tesla Motors Inc. (NASDAQ:TSLA) had announced in January that it had resolved the stand-off, but last month, Baosheng took the company back to court. A long-term solution to the matter could essentially remove the obstacle that has hindered the company from carrying out its expansion plan at a rate it desires. The company’s CEO, Elon Musk, has already said that he expects the company to be the biggest in terms of market share in the globe by next year.
Tesla Motors Inc. (NASDAQ:TSLA)’s growth could be accelerated in China on the back of incentives that include purchase subsidies and tax cuts that are designed to make its cars cheaper for a mass market. Tesla has also announced it has reached commercial terms for the transfer of certain domain names such as tesla.cn and teslamotors.cn from Mr. Baosheng, although the financial terms of the settlement have not been disclosed.
Tesla Motors Inc. (NASDAQ:TSLA) battle with Baosheng essentially outlines the kind of difficulties that multinationals face, especially during the initial stages of launching products in China. Regulators have always been on the throat of multi-national companies, with scrutiny and stringent rules not making the situation any better. Global companies like Apple Inc. (NASDAQ:AAPL), Koninklijke Philips NV (ADR) (NYSE:PHG) and Unilever N.V. (ADR) (NYSE:UN) have already been involved in such trademarks issues, Reuters added.
Baosheng is reported to have registered the trademarks sometime in 2006 and had sought to sell the same to Tesla Motors Inc. (NASDAQ:TSLA) but negotiations collapsed.