Final Ruling on "BAIC" Abbreviation: Belongs to BAIC Group, Beijing Automobile Works Must Cease Use

In late May 2026, the Beijing Intellectual Property Court issued a final judgment in the dispute over the ownership of the abbreviation “BAIC,” ruling that the legitimate rights to the “BAIC” abbreviation belong exclusively to BAIC Group. Beijing Automobile Works Co., Ltd. (hereinafter referred to as “the Manufacturing Plant”) was ordered to cease using the term “BAIC” in its corporate name and product promotions. Both companies trace their origins to the early history of Beijing’s automotive industry. In 1958, the original Beijing Automobile Works produced Beijing’s first automobile—the “Jinggangshan” sedan—and launched the BJ212 light off-road vehicle in 1966. In 1994, the plant was fully integrated into the newly established Beijing Automotive Industry Corporation (the predecessor of BAIC Group). In 2001, following a joint restructuring between the former Beijing Automobile & Motorcycle United Manufacturing Company and a private enterprise, Beijing Automobile Works Co., Ltd. was established. In 2007, BAIC Group acquired a 51% stake through capital increase, making the Manufacturing Plant its majority-owned subsidiary. However, due to persistent losses, BAIC Group, with approval from the Beijing State-owned Assets Supervision and Administration Commission (SASAC), transferred its entire 51% equity interest for RMB 117 million in 2015. Since then, the Manufacturing Plant has operated independently as a private enterprise, relocating its headquarters to Qingdao in 2020 and coming under the control of Shandong Weiqiao Pioneering Group in 2023. In 2011, the two parties signed a trademark licensing agreement that authorized the Manufacturing Plant solely to use the “BAIC” trademark on complete vehicles and in product promotions—but explicitly did not permit it to adopt “BAIC” as part of its corporate name or abbreviation. After the equity divestiture in 2015, the Manufacturing Plant no longer had any legal basis to continue using the “BAIC” designation. In June 2024, the Manufacturing Plant held a “212 Brand Relaunch” event, announcing the upgrade of the 212 model into an independent brand and again using the “BAIC” name in its promotional materials. In October 2025, a 212 vehicle rolled over during a motorsport event, leading some members of the public to mistakenly believe the vehicle was manufactured by BAIC Group, causing market confusion. Despite repeated clarifications from BAIC Group stating there was no affiliation between the two entities, public misunderstanding persisted. In November 2025, the court of first instance ruled that the Manufacturing Plant had engaged in unfair competition and ordered it to stop using any identifiers containing “BAIC.” Dissatisfied with the ruling, the Manufacturing Plant appealed. The Beijing Intellectual Property Court accepted the case on January 8, 2026, and issued its final appellate decision in late May 2026, upholding the original judgment. The court held that through decades of continuous use by BAIC Group, the abbreviation “BAIC” has developed a stable and distinctive association with BAIC Group in the marketplace, and the associated rights therefore belong to BAIC Group. The Manufacturing Plant’s continued use of “BAIC” without authorization and after its separation from BAIC Group is likely to mislead consumers and constitutes unfair competition.