Saab has no right to sell BAIC-owned intellectual property, BAIC executives say

Gasgoo.com (Shanghai June 22) - Beijing Automotive Industry Holding made headlines today when it decried that Saab had the right to sell intellectual property bought by BAIC to new owner, National Electric Vehicle Sweden. "It's impossible," an unnamed BAIC executive was quoted in a recent Shanghai Securities Daily report, adding that, "in 2009, we already purchased the relevant intellectual property rights."

According to reports, BAIC's soon to be sold own brand C70G sedan (pictured), which made its debut at the Beijing International Automotive Exhibition earlier this year, is developed on BAIC-acquired SAAB technology. The car is pegged to play an important part of the manufacturer's development strategy.

Before Pangda and Youngman, BAIC was the first Chinese enterprise to begin contacting Saab. In December 2009, BAIC announced that it had spent $197 million to purchase intellectual property rights from the ailing Swedish manufacturer. According to BAIC Board Chairman Xu Heyi, the purchase included the rights to three platforms, three model designs, two engine series and two transmissions. The most important parts of the purchase were the platforms used for Saab's 9-5 and 9-3 models.

BAIC and Saab also signed an agreement to guarantee that relevant intellectual rights were the property of BAIC. According to the agreement, BAIC is the sole owner of all intellectual rights associated with the 9-5. The manufacturer also exclusively owns the rights to the 9-3 prior to 2005. Rights to the 9-3 between 2005 and 2009 are the joint property of BAIC and Saab, with any decision to transfer them to a third party only possible after joint discussions. Any intellectual rights after 2009, meanwhile, are the property of former owner General Motors.

"In reality, Saab's actual property is limited to its brand name and logo," BAIC's executives were quoted as saying. Furthermore, Saab AB and Scania AB need to approve any sale of the Saab logo.