Tesla Wins One Over Chinese Trademark Troll 103
cartechboy writes "The Tesla Model S went on sale in China this week, at a price of $121,000--which is the same $79,900 price as in the U.S. plus a whole bunch of other costs tacked on, mostly the customs duty China uses to protect its own auto industry and a stiff value-added tax. But that's not the big news. Lost in the announcement was the news that Tesla got its brand name back from a Chinese trademark troll who'd registered it in 2006, even before the very first electric Roadster was sold in the States. So now the company's stores can carry the name "Te Si La," which is the Chinese transliteration most familiar to consumers in that country. Score one more for Tesla Motors."
Re:So how is this a win (Score:5, Informative)
Trademarks exist to ensure that consumers know the source of the goods they buy. If you aren't selling the public something using the name, then you can't tie up the name merely by registering a trademark and sitting around (as this guy seems to have done.) There was no need for Tesla to bargain, because there was no segment of the vehicle buying public that would be confused by Tesla selling the vehicles under their own name.
Re:So how is this a win (Score:5, Informative)
Eh, are you serious? You can't just trademark the names of products that are not yours in countries where they have not yet applied just to blackmail the company. If you have a legitimate product and you are the first to register that name for it, it is all good and they will have to pay you to get it back. But this guy just registered the name and made a fake "Tesla Motors China" website, complete with the Tesla logo and a car he had no relation to, then asked for millions.
Re:So how is this a win (Score:4, Insightful)
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Good grief, you sound like some small-town businessman who thinks he can get a Pentagon contract because he "knows a bunch of people in Washington". Random paper pushers can't do shit for you, heads of governmental departments can get shit done. You're right that "most of them can't do anything for you", there's a difference between between most people and the "right people".
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Reading through this thread, you're guilty of it too. GP said "right people in the CCP" and specified "extremely powerful people". Odds are that YOU don't know any of these 'extremely powerful people', even though you know a 'bunch of commies'. You know paper pushers, not movers&shakers as Cusco mentioned.
And there's probably more similarities between the rulers of Communist China and 'Washington' than with common people. Elan Musk probably promised the prospect of a space rocket ride(or a little as
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Elon Musk didn't bribe anyone, there's perfectly good legal avenues available. When you bribe an official, you can't stop once you've started. It's a poor business decision. If you depend on him to do business, eventually he will retire or go to jail and you're screwed.
"One of the things I have always found troubling about West
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Elon Musk didn't bribe anyone, there's perfectly good legal avenues available. When you bribe an official, you can't stop once you've started. It's a poor business decision. If you depend on him to do business, eventually he will retire or go to jail and you're screwed.
I wasn't actually thinking about anything so official as a 'bribe'.
But yeah, you're right that bribing is a bad idea.
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But in [Insert country here] at least, knowing the right people in the [ruling party of that country] can get you far.
Now can someone list a country where this is not the case?
Every second day there are stories about the XXAA passing favourable laws, and now we want to pretend this is a "china thing" as its convenient?
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Sure you can. You don't know Chinese law. Just another ignorant foreigner who thinks he can breeze into China and things will be just like they are back home. Nine times out of ten when you hear the "China screwed me" story it means
...that China has bullshit, protectionist laws which permit them to screw people. The nature doesn't differentiate them from other nations, only the scope.
Re:So how is this a win (Score:5, Insightful)
Tesla was not competent enough to register the trademark in all markets it was going to do business, and someone else did. Rather than working out some medication where Tesla paid for the lack of foresight, it was simply taken away. I don't think that the ruling was wrong, obviously China does not value the free market the way the US does, but there should have a happy middle between millions of dollars and something reasonable to pay.
The only reasonable value to pay to a troll is zero. Actually, no. The correct amount is that the troll pays the victim for their trouble and legal fees. A reasonable compromise is zero. The company in question was 100% troll. They were not doing business under that name. They had no intention of doing business under the Tesla name. This is true regardless of whether Tesla was "competent" enough to defensively register its name in all markets before it had product to sell just in case a troll an idea how to make some easy, unearned money.
A troll is a troll. (Score:2)
And you are OK with Patent Trolls as well? Because it's the same mindset that drives both these "business models" - gain control of something you have no intention of using yourself except to extort money from some company that has a fat wallet.
Classy.
The reason why Musk won this, (Score:2)
More for show than environment (Score:3, Interesting)
As mentioned in the article, most buyers in China will get this more for show than for the environment. At least in the U.S. when trolls call electric cars pointless, I can point to the 100% wind power on my electric bill and be smug about it, or at least point out that big industrial power plants in the countryside can scrub and dilute their exhaust more efficiently than thousands of cars crammed in a little city, but in China I think the power plants right now are probably just as bad.
I do find it strange that the article mentions China incentivizing electric vehicles to reduce smog, while also pointing out the huge import duties Tesla has to pay. Given how cheap almost everything made in China is here, I didn't realize that they could tax our exports of anything that highly.
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Trade rules with China were negotiated in the context of the cold war.
To the extent that Nixon achieved a trade war verses a cold war it's a success. China's middle class is growing faster then America's is shrinking. American manufacturing is lean and mean, but still struggling against cheap Chinese labor.
The peg is why we print so much money. When it moves to a market rate, everything changes.
Re:More for show than environment (Score:4, Informative)
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Well, as far as eco-bookkeeping goes they'll probably be able to point to their electric bill and prove they use only hydro-electric from, say, the three gorges dam..
Same way I only use atomic electricity in my Ampera (aka Volt). Thankfully when everyone's killed their nukes the electricity will still keep flowing. I suspect my billl will look a little different though...
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According to this report by the EESI [eesi.org] coal accounted for 65% of China's electricity production back in 2012, although it doesn't say what proportion of that is so-called "clean coal".
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How did what you post refute what I posted?
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Given how cheap almost everything made in China is here, I didn't realize that they could tax our exports of anything that highly.
Many countries have enormous import taxes on foreign cars, sometimes going up with engine size.
And then Luxury cars always have extra taxes added on, even in the USA.
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http://en.wikipedia.org/wiki/C... [wikipedia.org]
"As of November 2010, the 1963 tariff of 25% still affects importation of light trucks."
http://www.tirebusiness.com/ar... [tirebusiness.com]
"Imports of car tires from China doubled in October and November 2012 vs. the same period in 2011, the first full months after the elevated U.S. import tariffs on such tires expired on Sept. 27."
The US has a very long history of slapping large tariffs to support its domestic market (just like every other country).
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Seems easier then trying to force your will on them right?
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whats stopping them from setting their own import tax rate?
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Couldn't find any up to date stats but Wikipedia [wikipedia.org] says that China was generating 17% renewable energy back in 2007. China has more wind power than any other country on earth, and is aiming for generating 190,000 MWh in 2015. They have more wind power than nuclear, in fact.
If you are into that sort of thing they are building new nuclear too, which does at least have low emissions when operating correctly. China's is making a lot of progress with clean energy, it's just that they started from such a bad positi
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Most Tesla buyers in Europe and the US also get it more for show than the environment.
IMHO that's a good thing, you now have some people getting a Nissan Leaf because it makes economic sense in some situations, and some people get a Tesla because a Tesla is an awesome car. Electric cars are not just about the environment anymore, and that in the end will help the environment.
(I'm not saying nobody gets a Tesla for the environment, but despite what people may say it's for, lets be honest, usually it isn't re
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At least in the U.S. when trolls call electric cars pointless, I can point to the 100% wind power on my electric bill and be smug about it, or at least point out that big industrial power plants in the countryside can scrub and dilute their exhaust more efficiently than thousands of cars crammed in a little city, but in China I think the power plants right now are probably just as bad.
The dirty secret is that every power plant in the USA is probably over its emissions targets. I know a guy who used to climb stacks for a living for the government. Literally everything he ever sampled was above legal limits. Everything. Don't get all smug about American pollution controls, they are not as strong as you think. China has all that pollution not just because of weaker pollution controls, but because they're doing our manufacturing.
I do find it strange that the article mentions China incentivizing electric vehicles to reduce smog, while also pointing out the huge import duties Tesla has to pay.
That's not strange or even interesting. China is actually assis
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Not to nitpick, but at the moment there isn't much of an EV market.
That's okay, because at the moment the Chinese aren't much good at making cars. By the time there's an EV market, they may have it sorted out well enough to sell some.
And by all the accounts I've read, the Chinese government is actually concerned about the smog because it is becoming a drag on the economy (via health costs, lost productivity, etc), and also (perhaps more importantly) it is a loss of face. They totally hate losing face.
Perhaps then they should do something substantive about it. Executing people makes for good headlines, but it doesn't clean up the air.
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Source please.
Knock-Offs (Score:2)
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Sorry, I'm not familiar with the language. Does that translate as "Next Teusday"?
It's "very fast".
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My favourite Chinese salesman-ism is, when encouraging you to try some food that looks, sounds or tastes a bit horrible is "...very good for you" said it a suitably serious tone.
E.g.
"Black dog. Very good for you"
Or, if you have a nasty rash from eating the food or breathing the air for an extended period
"Very good for skin".
"Free Trade" (Score:3, Insightful)
the customs duty China uses to protect its own auto industry
But remember, we have free trade!
No really, all you have to do is define it such that "free trade" means the US has to bend over, while China, etc. get to do whatever they want to protect their industries.
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No, average US agricultural tariffs are lower than China's. We have a few weird items subject to substantial tariffs, like sugar and orange juice, but our overall agricultural tariffs are low. Looking for high agricultural tariffs? Try the EU.
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Corn subsidy.
Market manipulation need not be just a tariff, nor is it always bad, but these clearly are
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http://sugarcane.org/global-po... [sugarcane.org]
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Congratulations, you've identified one agricultural product where the US has ridiculous tariffs. Another is orange juice. If you actually consider all agricultural tariffs, the ones in the US are quite low. China's are higher, and the EU's higher still.
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http://www.wto.org/english/tra... [wto.org]
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No really, all you have to do is define it such that "free trade" means the US has to bend over, while China, etc. get to do whatever they want to protect their industries.
If there was a problem with import taxes on autos, we'd complain to the WTO and get a ruling.
Even "free trade" needs someone with the authority to regulate it.
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The US also has the "chicken tax" that adds a whopping 25% tariff on small pickup trucks and vans imported into the US.
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Look at all the WTO issues COOL, Softwood Lumber, etc
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the customs duty China uses to protect its own auto industry
But remember, we have free trade!
No really, all you have to do is define it such that "free trade" means the US has to bend over, while China, etc. get to do whatever they want to protect their industries.
Are you joking? We don't allow China to get our technology. The US government blocks Chinese buyouts of American companies.
It's definitely not one sided as you perceive it to be. They protect their domestic market. We protect our technology.
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yea they have just been building all our tech for the last 30 years totally blind and ignorant of the designs they have been producing since the mid 80's genius
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US does exactly the same towards foreign car manufacturers.
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It doesn't, though. We don't have those kind of tariffs, we have other tariffs. Except of course the 25% "chicken tax", still standing today, on light trucks. That's a real bitch because it prevents us from getting the vehicle I want most in the world, the Nissan Patrol Diesel. Oh wait, we'd also still have bullshit from the EPA preventing that motor.
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Something like this: http://www.advisorperspectives... [advisorperspectives.com]
beta.slashdot thread anyone? -1 off topic (Score:2)
I know how much my fellow slashdotters
Re:Tesla (Score:5, Insightful)
I can't imagine living in a world where 70 thousand dollars must seem like something obtainable only by the top 1%
??!?!
Unless you live on Mars, you *do* live in that world.
To BILLIONS of people "in this world" a $70K+ car is something obtainable only by the top 1%. To the deeply impoverished of Africa, India and Asia - And some parts of South America - Spending more money than they will see in their entire lives on a car seems unimaginable, especially when you consider spending $40K on a car and then spreading your 'leftover' $30K in an African village on goats, vaccinations, mosquito nets, school supplies and a well will improve their lives dramatically.
You will literally be saving the lives of children.
Sure you'll be driving a Leaf instead of a Tesla, but so what?
Yeah, yeah, I'm a commie. Whatever. Stop buying stupidly expensive cars and help your fellow man.
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I'm an American, and while I probably walk past at the grocery store that make over $70k/year, being approx. seven times as much as my own income makes it feel like it might as well be something only the really rich people have.
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Saying that it is the personal responsibility of people to do that make you a conservative.
Repeating that meme because you want to lessen what others are saying and because you read it so often from liberal sites just makes you an idiot.
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Buying a Tesla does help your fellow man. We need to move to electric vehicles and reduce dependency on oil and coal. As well as reducing your own output of pollution you help popularize EVs and show that they are viable and profitable.
I'm under now illusion that spending that kind of money on a car is some kind of act of charity, but you could do a lot worse.
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Exactly.
Someone had to buy those personal computers in the 1980s for $3000 a pop (or more) in order to drive the efficiencies that lead to the current wave of sub-$500 PCs that are all over the place.
If someone wants to spend more to be at the forefront, why not congratulate them and allow the march of progress continue?
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If someone wants to spend more to be at the forefront, why not congratulate them and allow the march of progress continue?
Because they're doing enough of that congratulation themselves whilst whizzing past you in the carpool lane or while making passive aggressive comments about how 'gas guzzlers' should be banned by the government.
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Buying a Tesla does help your fellow man. We need to move to electric vehicles and reduce dependency on oil and coal
That's why I said buy a Nissan Leaf instead and use the leftover $30K to help some kids.
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Same will go for OLED TVs and electric cars.
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What do you think of the so-called 'prime directive' from Star Trek?