Photo/shetuwang

Jan.8 (NBD) -- Southwest China's Chengdu Intermediate People's Court adjudicated in the first trial that Ford Motor (China) Ltd. (Ford China) should stop any conduct infringing Sichuan Yema Automobile Co., Ltd (Sichuan Yema)'s right to use the registered trademark of "Yema".

Besides, Ford China has to pay 1 million yuan (154,244.8 U.S. dollars) to Sichuan Yema as compensation for economic loss caused by Ford's use of "Yema" as its Chinese name for years.  

In 2016, Sichuan Yema filed a lawsuit against Ford China for the Chinese name of its muscle car brand Mustang is the same with Yema. According to Sichuan Yema, the company registered the trademark of Yema in 1986.  

Wei Shibin, senior partner of the Beijing-based law firm Dentons told NBD that China adopts a "first-to-file" system in trademark protection, which means the registration time is the key basis of the judgementover the trademark ownership.

The lawsuit over the trademark "Yema" has continued for two years. Industry insiders noted that this is not the final ruling, which means Ford China still has the right to pursue an appeal.

Mustang, as a high-performance car under the brand of Ford Automobile, is sold as imported car in China. Ford released its first Mustang at New York World Expo as early as 1964. After imported to China, Mustang is well-received by Chinese consumers. Its car logo, a free roaming horse, has long been treated as one of the representations of high-performance cars. 

Compared to Ford Mustang, Sichuan Yema is less well-known for Chinese customers. But in earlier years, the company has nationally renowned vehicles, such as the "Jinding" (bus), "Yema" (light-off-road vehicle) and "Bailu" (Mini-vans).

The company was originally established in late 1980s, which was merged by Fulin Group in 2002 and renamed as Sichuan Automobile Industry Group. In 2015, the company was renamed again as Sichuan Yema Automobile Co., Ltd.

Sichuan Yema told NBD in an interview last Sunday that the company has been doing well in recent years. The trademark of Yema should be clearly identified, avoiding any confusion. The company also noted the victory over Ford Yema will be significant for its future businesses.

However, some customers said for fans of Ford Yema they will continue to call it Yema as they like.

Ford China didn't comment before the reporter covered the story.

Email: tanyuhan@nbd.com.cn