Audi has earned a victory in the courtroom, as its Chinese competitor has been banned from advertising its ES6 and ES8 electric SUVs in Germany. A Munich court decided that the names were too similar to Audi’s S6 and S8 models and that Nio, therefore, was infringing on the German automaker’s trademark.
The decision was handed down on Thursday, reports Automobilewoche, after more than a year of dispute. In all, the case took 15 months to decide, with Audi contending that the names ES6 and ES8 were too similar to its models, the S6 and the S8.
While the judge agreed that the Nio vehicles’ names were factually different from Audi’s, the additional letter E was not distinctive enough to keep the vehicles from being “mentally connected, at least in terms of sound,” (as translated by Google).
More: Audi Launches Lawsuit Against Nio For Alleged Copyright Infringement
The ruling also pointed to the use of the letter E as a modification on a number of electric or otherwise electrified vehicles. It contended that people could see the additional letter and interpret it “as an indication of the engine type of the vehicle.”
“There is a risk that consumers will assume that the ‘ES 6’ is the ‘S 6’ in the electric version, that the two vehicles are from the same manufacturer,” the judge wrote. “There is therefore a transfer danger of confusion through association that goes beyond pure association.”
Although the decision is not final, and Nio has said that it is looking into appealing the verdict, the Chinese automaker faces a fine of €250,000 ($269,650 USD at current exchange rates) or up to six months in prison for its managing director in Germany.
While those penalties may take much longer to implement, especially if Nio does end up challenging the ruling, the company is now prohibited from advertising the ES6 and ES8 models in Germany. It will, however, be able to advertise the ES7, which was renamed the EL7 in the region, in October, to accommodate Audi.
Naturally, Audi is pleased with the result of the case, saying that it welcomes the verdict.
“We are careful to protect [our intellectual property] comprehensively,” Audi said, in a statement. “The judgment confirms that the disputed model designations infringe Audi trademark rights. Many of our models have an iconic character—for us and for our customers. This also and especially applies to our sporty S models.”
