As Nio announced its expansion into the European market for electric vehicles, the company was met with legal action from Audi. The automaker argued that Nio’s naming conventions, specifically the Nio ES8, were too similar to Audi’s S8 model. After a prolonged legal battle spanning over a year, a German court ultimately ruled in favor of Audi, finding that Nio had infringed upon Audi’s naming rights.
The judge acknowledged that the names Nio ES6 and ES8 were distinct from Audi’s S6 and S8 models, but ultimately determined that simply adding the letter “E” to the name was insufficient to differentiate the two. The ruling stated that there was a potential for confusion among consumers between Nio’s electric ES6 and Audi’s electric S6.
It may be difficult to understand how someone could confuse a Nio vehicle with an Audi, but legally speaking, the potential for confusion is a real concern. The judge in this case highlighted that “confusion through association” is a valid reason for companies to protect their naming rights.
As for Nio, the situation is not yet resolved. The company plans to appeal the verdict and the legal proceedings will continue. Currently, Nio is prohibited from advertising its ES6 and ES8 vehicles in Germany. Additionally, if the verdict stands, the company will be facing a fine of €250,000 or the possibility of a prison sentence of up to 6 months for the managing director of Nio Germany.
Audi’s legal action against Nio was actually a preemptive measure, as Nio does not currently sell the ES6 or ES8 in Germany. In fact, Nio has already renamed its ES7 model to EL7 as it began sales in Europe. It’s likely that the company will take a similar approach with its entire range and replace the “S” with “L” to avoid any further legal issues. In retrospect, Nio should have made this change to its naming conventions before entering the European market.
While it may seem frivolous for Audi to go after Nio, believing that consumers would confuse the two brands, it’s important to note that this is a wider industry problem. Established car companies are facing increased competition and are looking to protect their legacy. With many cars appearing similar, it’s not surprising that Audi felt threatened by Nio’s naming conventions.
