What Will Happen To Jeep As Mahindra Wins Lawsuit Over Roxor's Design?

The David-and-Goliath-like legal battle between Mahindra and Fiat Chrysler Automobiles (FCA) has left many off-road enthusiasts and industry insiders on their feet. The court has favored Mahindra, a foreign automaker, about the controversial design of Roxor. The implications of this legal triumph have sparked discussions about the future of both companies and the broader automotive landscape.

Copycat?

Roxor is an off-road-only rig brought by Mahindra Automotive North America to the United States in 2018. The Indian multinational automobile manufacturer aims to sell it as an alternative to side-by-sides (also known as utility vehicles or UTVs). But you cannot drive it around town, as it is a non-street-legal off-road vehicle.

Since Jeep is renowned for its rugged vehicles with a rich history, they claimed that Mahindra infringed upon the distinctive design elements of the Wrangler. You can see a few similarities when you compare the Jeep accessories and parts to Roxor’s design elements. A lot of people say that the design of Roxor has a striking resemblance to the original Willys Jeep. Many models from the brand came from the license-built CJs from the late 1940s, such as Jeep's off-road staple—the Wrangler.

Similar design

Due to many similarities, FCA (now known as Stellantis) prompted legal action against Mahindra. In 2019, the company filed a lawsuit against Mahindra Roxor's design in Michigan before the U.S. International Trade Commission (ITC). FCA claimed that they have trademark-protected components of Jeep. They also pointed out that Roxor’s resemblance demonstrates Mahindra has copied the design of the iconic Jeep.

Mahindra argued that Roxor’s 2018 and 2019-year models were no longer in production. These were the versions subjected to legal action. Additionally, the company reasoned that the redesigned 2020 models have a better and fresher look than the old versions.

The U.S. ITC initially took FCA's side in June 2020. The commission stated that the Roxor infringed on Jeep's trade dress (meaning appearance). Mahindra responded by restyling the Roxor for 2020.

Lawsuits

In May 2021, Jeep won a court case against Mahindra in Australia after the Indian car maker agreed not to import Roxor’s version that mimics the iconic off-road vehicle of the Jeep brand. However, the executives of Mahindra did not rule out the possibility of introducing an updated version of the Jeep Wrangler look-a-like in Australia at a later date. As per the undertaking offered to the court, they have shown it after significant design changes.

The Drive reported that Mahindra intends to import a future variant of the copycat vehicle. The company is obliged to supply Jeep with the vehicle’s details of the appearance intended for importation, marketing, and sale in Australia. While Roxor does not violate Jeep's trademarks, it infringes the trade dress, according to the International Trade Commission. The trade dress is the product’s look that helps distinguish its source from consumers. The ITC recommended prohibiting the importation and sale of Roxor parts.

FCA pushed the court to implement the safe distance rule requiring the foreign automaker to register a non-infringing yet new trademark that was sufficiently distinctive from Jeep’s infringed trademark. That way, the consumers can obtain precise information about two unrelated products.

Verdict

The Eastern District Court of Michigan concluded the dispute between Mahindra and FCA regarding Roxor’s design. After a prolonged legal battle, the scales tipped in favor of Mahindra. As reported by Automotive News, the court has ruled in favor of Mahindra and permits the company to continue selling the vehicle.

The verdict has raised questions about the boundaries of design protection in the automotive industry and has paved the way for possible shifts in competition dynamicsThe continuation of Roxor sales in the United States could disrupt the off-road vehicle market, as Mahindra offers consumers a more affordable alternative to traditional SUV models. As the dust settles, Mahindra may need to navigate a competitive landscape where brand loyalty and perceived value hold significant sway.

Mahindra’s Advantage

Bloomberg reported that the Indian multinational automaker may continue selling the Roxor 4x4. The Eastern District Court of Michigan allows the company to maintain production, sale, and distribution of the post-2020 model and newer versions of its 4x4 utility vehicle.

While there were some similarities when compared with the Wrangler, the court stated that Mahindra did not violate Jeep's intellectual property rights. Mahindra has the opportunity to capitalize on the newfound freedom in the design of their 4x4 off-road-only utility vehicle, Roxor.

The Aftermath for the Jeep Brand

The outcome of the lawsuit has left Jeep in a unique position. The decision to proceed with the case has shown FCA’s commitment to defending the Jeep brand and design. However, being defeated forces them to reevaluate some of the company's strategies.

Jeep's reputation as a trendsetter and innovator now rests on its ability to adapt to this new legal precedent. The company can intensify its efforts in design innovation by emphasizing some features that set its vehicles apart from competitors.

Jeep models like Wrangler are known for their off-roading capabilities and customizability. People will continue to buy them and add their personal touches, such as changing the Jeep wheels, installing some accessories, or upgrading some parts to improve their vehicle’s looks, reliability, and performance.

However, the public perception of Jeep's legal pursuits could impact its brand image. While many supporters and Jeep enthusiasts might see the lawsuit as a sign of vigilance, others could perceive it as an attempt to stifle the competition. Striking a balance between safeguarding intellectual property and fostering a collaborative industry environment will be a delicate task for Jeep moving forward.

Through the Rocky Paths

The outcome of the legal dispute between FCA and Mahindra regarding Roxor's design has sent ripples through the automotive industry. Mahindra can leverage its legal victory to drive Roxor's sales and further establish itself in the market. With Mahindra emerging as the winner, the landscape for off-road vehicles could significantly change. Facing a challenging disposition, Jeep has to redefine its design strategy and manage public perception.

This chapter in the legal battle influences the future trajectory of an automotive giant and new contender in the U.S. automotive market. As the dust settles, both companies must chart their courses, including their market and target consumers.