A KG Mobility dealership in Istanbul / Courtesy of KG Mobility
Carmaker still struggles to obtain rights to use its name
By Park Jae-hyuk
The prolonged dispute over the right to use KG Mobility's name has been taken to court in Turkey despite the Korean carmaker's confidence in reaching an amicable agreement with Turkish trademark troll Cihan Turan.
According to the Turkish Patent and Trademark Office, Sunday, the country's court accepted a request last month to temporarily restrict Turan's ownership of the "KG Mobility" trademark.
As a result, he has been barred from transferring his trademark rights to third parties, though he can still appeal the court's decision.
"The conclusion of a trademark invalidation lawsuit can take two to four years and can cause serious expenses and loss of time," a source familiar with this issue told The Korea Times.
"It would not be a wrong assumption to say that the plaintiff is KG Mobility," the source added.
A KG Mobility spokesperson was unavailable for comment on this issue as of Sunday, as he was unaware of the litigation.
"I will ask our legal affairs department about this issue next week," he said Friday.
In 2023, Turan registered the "KG Mobility" trademark in Turkey and the European Union (EU).
His registrations were made before the applications from the Korean company, which changed its name from SsangYong Motor in 2023 following KG Group's acquisition of the debt-ridden carmaker in 2022.
Given that the Korean Intellectual Property Office (KIPO) prioritized Turan's applications based on the Paris Convention, the Korean carmaker, KG Mobility, is facing difficulties in obtaining rights to use its English and Korean names, even in its home territory.
In Europe, KG Mobility's negotiations with Turan are also underway.
Earlier this year, the company asked the EU Intellectual Property Office to allow an additional two-month period to talk with him.
"Considering that Korea, Europe and Turkey are important markets for KG Mobility, the fact that the dispute is still unresolved and will likely drag on for years could have serious negative effects," the source said.
The logo for the Turkish government-run General Directorate of Highways is seen on its website. Screenshot from Turkish General Directorate of Highways' website
KG Mobility was reportedly asked by Turan to pay a significant amount in royalties.
Although the company decided in November 2023 to use "KGM" as an alternative to its full name, the three-letter acronym was rejected in Turkey due to its use by the country's government-run General Directorate of Highways, known as Karayollari Genel Mudurlugu in Turkish.
In Korea, KG Mobility managed to win the rights to the "KGM" trademark, as the KIPO accepted the company's claim last year that there is no similarity between the acronym and other brands.