One Vehicle - Two Different Brands: Which Intellectual Property Rights May Be Infringed? - AFFA IPR

One Vehicle – Two Different Brands: Which Intellectual Property Rights May Be Infringed?

Intellectual Property, Industrial DesignLeave a comment

We may already be familiar with the concept of ODM (Original Design Manufacturer)—a production scheme where a single manufacturer produces identical products in terms of design, which are then marketed under different brands by multiple companies. This phenomenon is commonly seen in electronic products such as chargers, earphones, and smartphones.   However, what happens when a similar practice occurs in far more complex products such as motor vehicles?   Is it possible for two physically identical motorcycles or cars to be sold in the market under different brands? The answer is: yes—but not always legally.   Industrial Design: Protecting the Aesthetic Appearance of Products   In the automotive context, the most critical aspect is not only functionality, but also visual appearance, which is protected under Industrial Design rights.   Industrial Design protection covers shape, configuration, composition of lines or colors, and overall aesthetic impression. This means that if two vehicles share an identical design but are marketed under different brands, the legal conflict may strongly point toward Industrial Design infringement.   Industrial Design Protection Extends to Individual Components   Under Industrial Design law, vehicles are categorized as “complex products,” meaning that each visible component—such as bumpers, headlights, or wheels—can be individually registered and protected as separate designs.   As a result, infringement involving a single vehicle may not be isolated, but rather multi-layered. For example, if a party produces a vehicle that appears substantially similar, and:   the bumper infringes Registered Design A the wheels infringe Registered Design B the headlights infringe Registered Design C   Then the infringement is not singular—it becomes a multi-layer infringement case with significant legal implications.   Why Does This Practice Occur?   Several scenarios may explain this phenomenon:   Legitimate Collaboration (Legal Co-Branding / Rebadging) In the automotive industry, this practice is commonly known as rebadging or OEM partnership. In such cases, one manufacturer produces the vehicle, another company markets it under a different brand, based on valid licensing or distribution agreements.  In this scenario, no infringement occurs, as Industrial Design rights are lawfully utilized through contractual arrangements. Unauthorized Copying (Illegal Production)  This is the highest-risk scenario. Here, a vehicle design is replicated without authorization and/or marketed under a different brand, with no legal relationship to the original design owner.In such cases, potential infringements may include: Industrial Design infringement. Trademark infringement (especially if there is imitation of identity or brand confusion).  Gray Area: Ex-ODM or Supply Chain Leakage In certain cases, manufacturers that previously collaborated under ODM/OEM arrangements: have access to proprietary designs and later reproduce similar products under a different brand without further authorization  Unfortunately, this type of practice is not uncommon in global manufacturing and often leads to complex legal disputes.   What Should Consumers Be Aware Of?   For consumers, this phenomenon is not always easy to identify. However, several precautionary principles can be considered:   Be Cautious of Unusual Price Differences If two visually identical vehicles are sold at significantly lower—or even unusually higher—prices, their legality should be questioned.  Verify Official Distribution Channels Is the product sold through authorized dealers with clear after-sales support? In legitimate partnerships, licensees or distributors typically disclose such information openly through official websites or social media channels.  The Risk Is Not Only Legal—But Also Quality Products that infringe intellectual property rights often bypass proper quality control and lack safety guarantees.  One Vehicle, Two Brands: Not Just a Trademark Issue, but a Complex IP Ecosystem   This phenomenon is not merely a branding issue. Behind it lies the potential for serious violations involving Industrial Design rights, Trademark rights, and even issues of public transparency.   For businesses, this serves as an important reminder that protecting intellectual property is not only about registration—it also involves controlling the production and distribution chain, often secured through licensing agreements.   For consumers, choosing legitimate products is not only about legal compliance but also about safety, quality, and the sustainability of the industry.   If you are a business engaged in global manufacturing, ensuring the protection of your Industrial Designs and Trademarks from the outset is a critical step.   Should you need further information regarding the protection of Industrial Designs, Trademarks, and Licensing Agreements in Indonesia, please contact us through the channels below and receive a FREE 15-minute consultation:   📩 E-Mail : [email protected] 📞 Book a Call : +62 21 83793812 💬 WhatsApp : +62 812 87000 889   About AFFA:  Established in 1999, AFFA Intellectual Property Rights is an Indonesia-based boutique IP law firm serving international brands and innovators, offering full-service support—from prosecution and licensing to enforcement and commercialization—in Indonesia’s dynamic IP landscape. Our firm is widely recognized for its excellence, with accolades including “Best Boutique Law Firm in Indonesia” and “IP Enforcement Firm” at the Indonesia Law Firm Awards 2025 by Asia Business Law Journal, as well as being listed as a “Recommended Firm 2024 — Indonesia” by WTR 1000: The World’s Leading Trademark Professionals. For more information, please visit: www.affa.co.id.

IP Infringement Risks - Is Building Replicas of Classic Cars One of Them? AFFA IPR

IP Infringement Risks – Is Building Replicas of Classic Cars One of Them?

Patent, Intellectual Property, Trademark, Industrial Design

Owning a rare classic car, even at a high price, can be a source of pride. What’s unique is that several classic cars, such as the Porsche 911, Shelby Cobra 427, and Ford Mustang GT500, which are widely used by Indonesian celebrities, are local manufacturers, aka custom or modified results from different cars. How is this practice viewed from an Intellectual Property law perspective?   In the production of vehicles, or in this case specifically four-wheeled cars, there are at least three categories of Intellectual Property (IP) related to it, namely Trademarks, Industrial Designs, and Patents. Let’s describe the details one by one.   Car Name & Logo are the Exclusive Rights of the Trademark Owner   According to the Trademark Law, a Trademark is a sign in the form of an image, name, word, letters, numbers, color arrangement, or a combination of these elements, which has distinguishing power and is used in trading activities for goods or services. The names and logos of well-known cars such as Porche, Shelby Cobra, and Ford Mustang are the property of Porche AG, Carroll Hall Shelby Trust, and Ford Motor Company, respectively. These Trademarks have been registered and recognized as well-known marks and are protected in many countries, including Indonesia.   The trademark’s ownership and protection are valid for ten years and can be extended. Therefore, there is very little chance for you to own or commercialize this Trademark in Indonesia without establishing official cooperation with the Trademark owner or its official distributor in Indonesia.   Regarding the use of Trademarks without permission, Article 100, paragraphs (1) and (2) of the Trademark Law clearly states, “Every person who without right uses a Trademark which is completely the same as a registered Trademark belonging to another party for similar goods and/or services which produced and/or traded, shall be punished with imprisonment for a maximum of 5 years and/or a fine of a maximum of IDR 2 billion.”   Industrial Design – Aesthetic External Appearance Protection   Another IP that is closely related to cars is Industrial Design. According to its definition, Industrial Design is the creation of a form of configuration, or composition of lines or colors, or lines and colors, or a combination thereof in a three-dimensional or two-dimensional form which gives an aesthetic impression and can be realized in three-dimensional or two-dimensional patterns and can be used to produce a product, industrial commodity, or handicraft.   Industrial Design protects the appearance of the car’s external design, whether as a whole or just in part, such as the design of the front bumper, rear bumper, rim shape, or even the threads of the tires. Industrial design can also protect the appearance of the dashboard, steering wheel, chair shape, and even the design of the pedal brake clutch, as well as the gear shift lever. Several Industrial Designs registered by Porche AG Source: Word Intellectual Property Office (WIPO)   As an Intellectual Property, Industrial Designs have a protection period of 10 years and cannot be extended. So, legally, you can use an expired design without getting approval from the owner. However, suppose you use a design that is still protected. In that case, Article 54 of the Industrial Design Law states that a maximum prison sentence of four years and/or a maximum fine of IDR 300,000,000.00 (three hundred million rupiah) awaits you.   Patent & Cars Innovations   Patents are another category of IP that can be contained in a car. If Industrial Design concerns an aesthetic external appearance, then a Patent only covers certain parts that include innovations in the field of technology. For example, braking sensor systems, light automation, or airbag systems are all protected Patents, and anyone who wants to use them must pay royalties to the Patent owner.   And if there is a violation or use of a Patent without permission, Article 161 of the Patent Law states that each person can be punished with imprisonment for a maximum of four years and/or a fine of a maximum of IDR 1,000,000,000 (one billion rupiah). Meanwhile, criminal sanctions, as regulated in Article 162 of the Patent Law for violations of Simple Patents, are imprisonment for a maximum of 2 (two) years and/or a fine of a maximum of IDR 500,000,000 (five hundred million rupiah).   If we are talking about modified cars, most of the technology contained in the original car will not be available. Firstly, because it is technically incapable of adopting the technology; secondly, it does not obtain a license for the Patent. That’s where modified cars become technically unsafe products because of a technological imbalance in their manufacture.   Legal Solution: Original Car Modification   Although since 25 September 2023, the Minister of Transportation of the Republic of Indonesia has promulgated Ministerial Regulation Number PM-45 of 2023 concerning Vehicles Customization, this regulation only regulates technical requirements regarding how modifications can and cannot be carried out so that the car is roadworthy, and provides a sense of security to users, as well as the requirements for a modification workshop to apply for a certificate, without touching on the Intellectual Property side.   Article 1 of Ministerial Regulation No. PM-45 of 2023 clearly states that modification or customization of motorized vehicles includes changes to the axle distance, construction, and/or materials, as well as changing the engine brand and engine type of a motorized vehicle for one’s benefit or individual.   However, it should be noted that customization by order by a custom workshop for one’s own or individual interests, if there is an Intellectual Property violation in it, is still at risk of receiving a complaint from the owner of the Trademark, Industrial Design and/or Patent, and may be subject to criminal sanctions as stated in each article of Intellectual Property law applicable in Indonesia.   For this reason, several legal practices widely implemented worldwide focus on making their own modified cars. An example of this is done by Mitsuoka Motor, a Japanese modification company that changes Japanese-manufactured…