A US regulator has ruled that Mahindra and Mahindra infringed upon the intellectual property rights of Fiat Chrysler Automobiles’ (FCA) Jeep brand, barring the sale of the vehicles in question.
The International Trade Commission (ITC) has upheld the Administrative Law Judge’s determination which held that the Roxor violated FCA’s trade dress, M&M said in a regulatory filing.
The ITC issued a limited exclusion order prohibiting sale or import of the infringing vehicles and parts, as well as a cease and desist order to Mahindra and its North American unit.
Trade dress consists of the unique characteristics that make a product stand apart and is accepted as identified with that product by the public. For example, FCA sees the Jeep Wrangler’s boxy body shape, front grille and round headlights as distinct to the brand.
The order is effective immediately, but the US Trade Representative has 60 days to potentially disapprove for policy reasons.
M&M, however, stated that the Roxor does not violate Jeep’s trade dress. “The company and its US-based subsidiary Mahindra Automotive North America remain resolute in its position that the Roxor does not dilute or violate Jeep’s trade dress,” M&M said, adding it was weighing options with respect to an appeal during the review period or in federal appeals court.
M&M added that the vehicle subject to the ITC action is no longer in production and the 2020 design was refreshed.
The ITC had been reviewing an administrative law judge’s initial determination from last November.
ITC had initially opened its investigation in September 2018. The coronavirus outbreak delayed the ITC’s decision.
Mahindra said in a statement on Friday that the vehicle subject to the ITC action is no longer in production and the 2020 design was refreshed.
FCA said in a statement it was pleased with the decision and that the Italian-American auto maker reserved further comment while it studied the ruling. The Roxor is assembled in Auburn Hills, north of Detroit. The model was launched on March 2, 2018, to be sold in the US and Canada.
Soon after, FCA lodged a complaint with the US ITC alleging that it is a copy of Willys Jeep and the design elements of Mahindra’s product infringes some key design elements of Jeep.
Mahindra employs more than 400 US employees and hundreds more through its network of over 400 dealers and US suppliers.