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June 2, 2025 20 mins

Buckle up for a high-speed legal adventure through the automotive industry's most consequential intellectual property battles. From Formula One espionage that cost McLaren $100 million to landmark rulings that protect the very shape of your car, we're lifting the hood on how innovation is fueled, protected, and occasionally stolen in the world of wheels.

The modern automobile isn't just a mechanical marvel—it's a rolling portfolio of intellectual assets. We examine how Ferrari's trade secrets became the center of motorsport's biggest scandal, why even windshield wipers can trigger multi-million dollar lawsuits, and how Jeep successfully defended its iconic seven-slot grille from imitators. These aren't just courtroom dramas; they're case studies in how IP shapes everything you drive.

As cars become computers on wheels, we explore new frontiers in automotive IP. BMW's battle against unauthorized 3D models raises profound questions about brand protection in digital realms. Patent pools like Avanci demonstrate how competitors can share essential technologies while still competing fiercely. And as autonomous vehicles race toward reality, we reveal why engineers have become "walking USB drives" of valuable trade secrets.

Whether you're fascinated by classic cars or electric futures, these legal showdowns reveal the invisible forces designing tomorrow's driving experience. Discover why automotive innovation isn't just about what's under the hood—it's about what's inside the contracts, patents, and courtrooms that determine which technologies hit the road and which remain on the drawing board.

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Episode Transcript

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Speaker 1 (00:00):
What do you get when you cross trade secrets, turbo
engines and a trademarked horse?
You get us Deep in the garagedissecting the legal horsepower
behind the car industry'sbiggest IP battles.
Today we're racing through $100million Formula One scandal,
cross-licensing deals that keepconnected cars running design

(00:21):
patents that got a 21st centurytune-up and one case that
redefined what happens whensecrets leak from under the hood
.
So buckle up.
Whether you're Team EV, oldschool combustion or just love
the smell of burnt rubber andnew contracts, this episode is
engineered for you.

Speaker 2 (00:40):
You are listening to Intangiblia, the podcast of
intangible law playing talkabout intellectual property.
Please welcome your host,leticia Caminero.

Speaker 3 (00:50):
Welcome to Intangiblia, the podcast where
innovation signs on the dottedline.
I'm your host, leticia Caminero, and today we're taking the
scenic route, with pit stops atpatent pools, design drama and
the kind of courtroom showdownsthat make you question whether
your favorite car was built orborrowed.

Speaker 1 (01:13):
I'm Artemisa, your AI co-host.
No fuel, all facts.
I may not have a driver'slicense, but I've read every
patent lawsuit filed since thecombustion engine.

Speaker 3 (01:22):
This episode was created using artificial
intelligence tools, includingArtemesa.
Here, no AI was drivenrecklessly or infringed upon in
the making of this podcast.
Let's warm up with a classicthe year is 2007.

(01:43):
The classic the year is 2007.
Ferrari discovers that aMcLaren engineer has, let's say,
borrowed 780 pages of internaldocuments.

Speaker 1 (01:54):
And not the fun kind.
These were full-blown tradesecrets gearbox designs, pit
stop timing, even confidentialemails.

Speaker 3 (02:03):
The FIA Motorsports Governing Body launches an
investigation, mclaren getsslapped with a $100 million zero
cents fine and stripped of itsConstructors' Championship
points.

Speaker 1 (02:18):
They didn't even have to prove.
Mclaren used the data, justhaving it was enough.
The takeaway Espionage has aprice tag and it comes with zero
.

Speaker 3 (02:28):
Now shift from race cars to self-driving ones.
Google's Waymo accused Uber oftrade secret theft involving
LIDAR laser radar used inautonomous driving.

Speaker 1 (02:39):
Their former engineer downloaded 14,000 confidential
files before launching a newstartup that got acquired by
Uber.
Subtle, not really.

Speaker 3 (02:48):
The case went public court, drama ensued and Uber
ended up settling $245 millionzero cents in equity and a
promise not to use Waymo'ssecrets.

Speaker 1 (03:00):
Plus their engineer got charged criminally.
It wasn't just a lawsuit, itwas a signal flare for Silicon
Valley.
Ip has a long memory, still inthe EV world.

Speaker 3 (03:11):
South Korea's battery titans LG and SK went head to
head over trade secrets.
Allegedly over 100 SK employeesleft LG, taking confidential EV
battery tech with them.

Speaker 1 (03:30):
The drama crossed oceans.
The US International TradeCommission almost banned SK from
importing batteries.
In the end, a settlement for$1,800,000,000,000, and a global
license agreement De La.

Speaker 3 (03:49):
Salle didn't stall innovation.
It fueled a truce.
Both companies went back to R&D, not legal war.
That's a win for electricdrivers everywhere.
Before our next case, let'sunpack a term Standard Essential
Patents, SIPs.

Speaker 1 (04:08):
What are they?
Artemisa?
Seps are patents that covertech everyone has to use to meet
an industry standard.
Think Bluetooth, 5g or carconnectivity.
If you want your vehicle totalk to satellites or stream
Taylor Swift, you need licensesto SEP.

Speaker 3 (04:24):
And negotiating with every telecom company a
nightmare.

Speaker 1 (04:27):
That's why patent pools exist Anna Avance and IP
Fastlane.
It bundles these SCPs and givesautomakers one license, one
price and zero courtroom.

Speaker 3 (04:38):
pit stops Big names like Toyota, BMW and Solantis
Avansi, to simplify SEPlicensing Instead of 50
contracts they get one.

Speaker 1 (04:49):
Even the US Department of Justice reviewed
Avansi and said, yep, this helpscompetition.
It's not collusion, it's commonsense.

Speaker 3 (05:05):
Avansi shows how IP doesn't just protect.
It enables industry-widecollaboration without
sacrificing innovation.
Now for a different flavor oflicensing mutual respect In 2022
, huawei and vehicle techsupplier Pateo signed a
cross-licensing deal.

Speaker 1 (05:19):
Huawei gave access to its wireless patents.
Pateo did the same for itssmart car IP.

Speaker 3 (05:29):
Their automaker clients got global clearance to
use cutting edge tech.
This kind of voluntarylicensing powers up innovation.
Without a single lawsuit, it'sEP Corporation done right.
This Chinese trade secret caseshook the chassis of the
industry.

Speaker 1 (05:55):
EV giant Geely sued startup Weldmeister for stealing
chassis designs and hiringtheir engineers to do it.
The Supreme People's Courtagreed awarding 640 yen million
in damages, the highest ever forIP misappropriation in China.
And here's the twist.

Speaker 3 (06:10):
The court said circumstantial evidence, like
key staff leaving, was enough.
You don't need a paper trailwhen the clone is parked outside
your lab.

Speaker 1 (06:19):
This case proved trade secrets aren't just
protected, they're sacred.
And theft, even clever theft,comes at a steep cost.

Speaker 3 (06:26):
Let's talk car parts and creative sparks.
Lkq challenged the validity ofGM's design patents on auto
parts.

Speaker 1 (06:35):
That triggered the federal circuit to revisit the
ancient Rosen-Durling test, usedsince the 80s to judge whether
a design patent is obvious.
What's a test in plain English?
Think of it like this UnderRosen Durling, the court needed
a super specific prior design toquestion your new one.
It was like comparingtaillights under a microscope.

Speaker 3 (06:57):
But now Enter the ordinary observer.
If the average person thinksyour headlight design looks like
someone else's, you might be introuble.

Speaker 1 (07:09):
It's a more flexible real world standard, protects
good design, but make sure it'sactually new.

Speaker 3 (07:18):
From design curves to digital networks, IP touches
every turn of the wheel.
These cases weren't just legalbattles.
They were blueprints for how toinnovate responsibly.

Speaker 1 (07:32):
And in a world where your car can drive, park and pay
for coffee, the law better keepup with the tech.

Speaker 3 (07:38):
You know how some cars turn heads.
Well, this next case turnedlegal heads.
Picture this You're in the USand a new off-road vehicle hits
the market.
It's boxy, rugged, has thatsignature, seven-slot grille,
and it's not a.

Speaker 1 (07:54):
Jeep.
Enter the Mahindra Roxor, Bornin India, built for American
trails and styled with a strongwhiff of Jeep nostalgia.
Too strong, said FCA FiatChrysler Automobiles at the time
.

Speaker 3 (08:06):
FCA wasn't flattered.
They filed a complaint with theUS International Trade
Commission, claiming Mahindra'srock store was infringing on
Jeep's trade dress.
That's the look and feel of aproduct that's legally protected
when it's distinctive andrecognized.

Speaker 1 (08:23):
FCA pointed to the iconic flat hood, boxy body,
vertical windshield and, ofcourse, that legendary seven
slot grill.
Basically, they argued, you'renot just copying the style,
you're copying the soul.

Speaker 3 (08:37):
Mahindra clapped back , saying the Rockthaur had
historical roots.
After all, they'd been buildingmilitary-style off-roaders
since they licensed Jeep'sdesigns in 1947.

Speaker 1 (08:50):
True, but the ITC wasn't buying the nostalgia.
In 2020,.
They ruled that Mahindra'sRocksaur did violate Jeep's
trade dress.
A cease and desist followedalong with a redesign
requirement.
So what did?

Speaker 3 (09:04):
Mahindra do.
They went back to the drawingboard.
The new rock store ditched theJeep-like hues and got the ITC's
blessing in 2021.
They stayed in the US market,but with a less Jeepy face.

Speaker 1 (09:20):
This case is a reminder even if your company
has legacy rights or historicalconnections, current commercial
confusion is what matters.
Trade dress protects whatpeople see, not what the history
books say.

Speaker 3 (09:34):
And it's also proved that design lawsuits don't
always kill products.
Sometimes they just force aglow up.

Speaker 1 (09:41):
Exactly.
Mahindra didn't stall out, theyshifted lanes, jeep got to keep
its iconic look and Mahindralearned that even rugged
vehicles need a soft touch whenit comes to IP.

Speaker 2 (09:53):
Intangiblia, the podcast of intangible law
Playing talk about intellectualproperty.

Speaker 3 (09:59):
Let's talk rims, because in this next case, it
wasn't the engine that sparkedthe legal fire, it was the
wheels.

Speaker 1 (10:07):
Oh yes, the Porsche wheels.
You know those sleek alloydesigns that make even a parked
911 look fast.
Turns out they were too goodlooking for their own good.

Speaker 3 (10:18):
Porsche accused Otec AG, a German aftermarket parts
maker, of copying those alloywheel designs.
Their argument the wheelsweren't just round, they were
recognizably Porsche.

Speaker 1 (10:32):
Otec didn't exactly deny it, but they claimed the
designs were dictated byfunction form following
necessity.
You need spokes right, circularshape, bolt holes.
It's not art, it's physics.

Speaker 3 (10:45):
But Porsche hit back.
No, no, these rims are morethan mechanical.
They're crafted style, designand under German and EU law that
gives them artistic protection,even if they roll law that

(11:07):
gives them artistic protectioneven if they roll.

Speaker 1 (11:08):
The court agreed In 2020,.
The German Federal Court ofJustice ruled in Porsche's favor
.
It said the wheel design wasn'tpurely functional.
It had that spark of aestheticinnovation enough to be
protected under copyright.

Speaker 3 (11:19):
So what does that mean?
Well, for one Outek had to pumpthe brakes.
But more importantly, itreaffirmed that industrial
design isn't just about function, it's about flair.

Speaker 1 (11:32):
It also sent a clear message to the aftermarket world
If you're going to borrow adesign, make sure it's not
riding on someone else's IP.
Exactly.

Speaker 3 (11:43):
Just because a part spins doesn't mean you can spin
it off someone else's blueprint.
Yes, even car part designersdeserve their credit and their
copyright.

Speaker 1 (11:53):
And now we know Porsche protects more than
horsepower they protect rimpower.

Speaker 3 (11:59):
This next case puts us in the driver's seat of a
much more futuristic rideautonomous trucks.

Speaker 1 (12:07):
Oh, we're going full sci-fi now.
In 2021, Seth Friedrichshafen,a titan of automotive tech, took
legal action against Traton SE,the commercial truck division
of Volkswagen Group.

Speaker 3 (12:20):
The issue alleged trade secret theft.
They have been developingautomated driving systems and
software for next gen freightvehicles.
Then several key engineers jumpship to Traton.

Speaker 1 (12:37):
Use the dashboard warning light.
Zf said those employees tookconfidential algorithms, system
architectures and controlsoftware with them, not just
brainpower blueprints.

Speaker 3 (12:48):
They didn't file patent claims.
They went straight to tradesecret law.
Why?
Because these were innovationsstill in the test zone, too
fluid, too secret, too valuableto publish in a patent.

Speaker 1 (13:03):
ZF requested injunctions in German civil
court, arguing the risk ofirreversible competitive damage.
The court granted preliminaryrelief and the parties reached a
confidential settlement notlong after.

Speaker 3 (13:13):
Translation no courtroom finale, but a big
victory for trade secretenforcement.
It showed that if your tech isbleeding edge, keeping it
confidential might be your bestprotection strategy.

Speaker 1 (13:26):
Also, this was a reminder that your employees are
walking USB drives.
Mobility isn't just aboutwheels anymore, it's about who
carries the code.

Speaker 3 (13:36):
So memo to the mobility industry protect your
know-how, lock down your accessand don't let the engineers roll
out with more than just agoodbye email.
Okay, tell me, this soundsfamiliar.
You're browsing online for 3Dmodels, maybe for a video game,
a virtual showroom or just toflex your CGI skills.

(13:57):
And boom, you see it A sleekBMW, perfectly modeled, bad real
, even the curvature of the hood, Except it's not BMW selling it
, it's TurboSquid.

Speaker 1 (14:10):
Oh David, there were not.

Speaker 3 (14:12):
BMW sued TurboSquid in 2020, claiming trademark
infringement.
Their argument these digitalreplicas use the BMW logo,
kidney grille and signaturevehicle designs without just
flattery.
It's unauthorized brand use.

Speaker 1 (14:29):
TurboSquid tried to downshift.
Hey, they said these models arefor artistic or educational
purposes, not actual cars.
No harm done.

Speaker 3 (14:39):
But BMW hit the brakes on that logic.
But BMW hit the brakes on thatlogic.
They argued that the 3D modelswere being sold commercially and
could be used in games as orvirtual experiences where
consumers might think they wereofficially licensed.
It wasn't just art, it wascommerce.

Speaker 1 (14:59):
The lawsuit never made it to full trial.
It was quietly settled but theroad it paved Huge.

Speaker 3 (15:06):
It raised major questions about brand protection
in the digital realm, Like ifyou sell a 3D replica of a real
car, is that protected speech ora trademark relation?
Where's the line betweendigital tribute and digital
infringement?

Speaker 1 (15:23):
And what happens when those virtual cars start
showing up in metaverseplatforms, online showrooms or
even in NFTs?
Suddenly that little 3D filehas real world legal weight.

Speaker 3 (15:35):
The interview made one thing clear Just because
your creation isn't physicaldoesn't mean it's not a legal
risk.
Virtual use still needs veryreal IP clearance.

Speaker 1 (15:48):
So next time you're designing a 3D model of a car,
ask yourself do you want todrive innovation or drive
straight into a trademarkdispute?

Speaker 3 (15:56):
You'd think windshield wipers were simple,
but in the world of IP turns outthe quietest parts can make the
loudest legal noise.

Speaker 1 (16:05):
Welcome to wiper wars , where the rain wasn't the only
thing these giants were tryingto clear away.

Speaker 3 (16:12):
Valeo, a French automotive powerhouse, took
Trico to court in the US and inEurope.
Their claim that Trico hadinfringed on patents related to
smart wiper systems yes, thekind that can adjust to speed,
rain levels and even talk toyour car's onboard sensors.

Speaker 1 (16:32):
Not just that, vallejo said former employees
who jumped ship to Trico tookmore than memories.
They allegedly broughtconfidential R&D trade secrets
wrapped in rubber and circuitry.

Speaker 3 (16:45):
And this wasn't some quiet drizzle of a lawsuit.
We're talking full-on downpourHigh East District Court filings
a case before the USInternational Trade Commission
and European legal maneuveringto stop the import and sale of
the allegedly infringing wipers.

Speaker 1 (17:06):
Vallejo went for the jugular with the ITC trying to
ban trichal products fromentering the US.
And when you've got contractswith major car makers, an import
ban, that's a career-endingaquaplane.

Speaker 3 (17:21):
Trico, for their part , argued the designs weren't
identical and that the featureswere independently developed,
but the hit and risk was toohigh.

Speaker 1 (17:31):
On both sides by 2023 , they called a truce.
The parties reached a globalcross-licensing agreement giving
each access to the other's techportfolio.
No winners, no losers, justwipers and profits Still moving.

Speaker 3 (17:49):
This case is a masterclass in using both patent
and trade secret law, plus alittle regulatory jujitsu via
the ITC, jujitsu via the.

Speaker 1 (18:05):
ITC and it shows how ugly things can get, even over
components most drivers don'tthink twice about, but if you're
in the innovation lane itmatters.
In the race toward automation,every part talks to the system.
Your wipers aren't just wiping,they're smart, synced and
swimming in protected IP.

Speaker 3 (18:20):
I don't know.
So the next time it rains andyour blades adjust like magic,
just remember somewhere.
A legal team made that happen.

Speaker 1 (18:31):
And somewhere else a trade secret policy got
rewritten in triplicate.

Speaker 3 (18:37):
All right, let's back it right here.
What did we learn after allthat legal?

Speaker 1 (18:41):
horsepower.
First off, trade secrets mattereven without a smoking gun.
Courts today don't always needdirect proof.
If your top engineer walks offwith your blueprints and shows
up at a rival, well let's justsay, judges aren't blind.

Speaker 3 (18:56):
Second, the science have to pass the does it look?
New test.
Thanks to the Rosendalingupdate, it's no longer about
obscure comparisons.

Speaker 1 (19:08):
If the average person thinks your headlight or rim
looks familiar, you might be introuble In collaboration beats
courtroom chaos, cross licensing, patent pools, mutual deals
they're keeping the wheelsturning in a very literal sense.
Ip strategy isn't just defense,it's fuel.

Speaker 3 (19:28):
Or digital isn't a loophole.
Selling a 3D car model thatlooks exactly like a Porsche or
a BMW.
That's not just art, that's afast track to a trademark fight
and finally function won'talways save your design.

Speaker 1 (19:46):
If it looks cool and customers recognize it, courts
might protect it.
So if you're inspired bysomeone else's fender or wiper,
rethink your sketchpad.

Speaker 3 (19:57):
That's a wrap for this ride.
Thanks for riding along with us.
We'll see you next Tuesday witha fresh episode in both English
and Spanish.

Speaker 1 (20:06):
And remember, if you're going to build the future
, you better patent the chassis.
Catch you on the next lap.

Speaker 2 (20:15):
Thank you for listening to Intangiblia, the
podcast of intangible law plaintalk about intellectual property
.
Did you like what we talkedtoday?
Please share with your Thankyou.

(20:36):
Visit our website,wwwintangibliacom.
Copyright Leticia Caminero 2020.
All rights reserved.
This podcast is provided forinformation purposes only.
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