China’s Supreme Court Orders WM Motor to Pay Record USD88 Million to Geely in IP Lawsuit
Xiao Yisi
DATE:  Jun 17 2024
/ SOURCE:  Yicai
China’s Supreme Court Orders WM Motor to Pay Record USD88 Million to Geely in IP Lawsuit China’s Supreme Court Orders WM Motor to Pay Record USD88 Million to Geely in IP Lawsuit

(Yicai) June 17 -- China’s supreme court has ordered troubled electric vehicle startup WM Motor Technology to pay a record CNY640 million (USD88 million) in compensation to Geely Automobile for infringing the car giant’s technology and trade secrets.

WM Motor and its related parties must stop disclosing, using, and allowing others to use Geely’s technological secrets, the Supreme People’s Court said on June 14 in a final verdict on an intellectual property lawsuit between the two companies.

WM Motor must also stop selling chassis and related parts produced with the technologies involved in the lawsuit and not use, transfer, pledge or otherwise dispose of the 12 utility model patents involved in the case.

In 2016, almost 40 senior managers and technology staff at Geely affiliate Gaoyuan Automobile Industry left to join new energy vehicle firm Weima Automotive Technology Group and its affiliates.

Two years later, Geely discovered that Weima and WM Motor unit WM Smart Travel Technology Shanghai had applied for 12 utility models based on technologies Gaoyuan Auto’s former employees had access to, with their names listed as inventors or co-inventors.

Geely observed that WM Motor launched EVs in a very short period of time without any technological accumulation or legal technology sources, and began to suspect WM Motor of infringing its IP.

Geely took WM Motor and its related parties to court, with the first-instance judgment ordering the latter to stop the infringement and pay CNY5 million (USD689,190) in economic damages and CNY2 million of reasonable expenses. Unsatisfied with that, both parties appealed to the supreme court.

Editors: Xu Wei, Futura Costaglione

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Keywords:   Geely,WM Motor,Intellectual Property