KG Mobility Corp Faces Trademark Challenge, May Drop Name in Global Markets

KG Mobility Corp., formerly Ssangyong Motor, may be forced to drop its name due to a trademark issue overseas. The South Korea-headquartered automobile manufacturer may be unable to use its English title, "KG Mobility," as it was discovered that it is already registered in Europe.

With this discovery, KG Mobility is on the verge of losing its new name after the Ssangyong Motor rebranding. According to The Korea Economic Daily, this issue poses a problem for the company's plans to speed up its global expansion under a new owner.

Why KG Mobility's Trademark Application Was Rejected

Based on reports going around the automotive industry in the country, the Korean Intellectual Property Office (KIPO) did not accept KG Mobility's registration application to trademark its name, and this was in September. It was said that the IP office rejected the request because the title is already trademarked in not just one but around 30 countries.

An official at KIPO explained that it was outlined in the Paris Convention that if a trademark or intellectual property is registered in any country, the item is protected in the same manner and extent across other nations. The bureau revealed that KG Mobility had already been trademarked with the European Union before the automaker submitted a trademark application.

Korea's News1 reported that Cihan Turan from Turkey registered KG Mobility with the EU and the United Kingdom first. It was filed at the trademark office in March; thus, it is now difficult for the Korean automaker to use its KG Mobility, which it also uses for its business in global markets.

Appeal to Change KIPO's Decision

KG Mobility is still attempting to reverse KIPO's decision by making an appeal. However, it will take at least a year before the office can decide on the matter, as deep review is also needed.

While it waits for the decision, the company said it will temporarily use KGM for its business overseas. Then again, if the regulator still rejects KG Mobility's appeal, it will have to give up its name entirely, and it can no longer be used even in South Korea.

"Our company name is KG Mobility in the domestic stock market, and there is no problem with the company name," an official at KG Mobility said. "However, it is difficult to use an English name right now. We explain to overseas dealers that our company name is KG Mobility, but overseas we use it as KGM."

Photo by: KG Mobility Website