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How to Manage IPR in the Automobile Industry? – An Overview

IPR in the Automobile Industry
| Updated: Feb 18, 2022 | Category: IPR

The report said that the automobile industry is one of the fastest-growing & highest revenue earning industries. The sphere of international filing trends in the automobile industry is expected to experience a great change in 2020. With the fastest growing technology, many innovative techniques have been observed by the automotive sector. One such successful or flourishing tale of success runs with Tesla, who has managed to Patent their car functions magnificently. In the article, we will discuss the facts to prove the significance of the IPR in the Automobile Industry or, in simple terms, how can you manage IPR in the Automobile Industry.

What is the Importance of IPR in the Automobile Industry?

Following are some importance of IPR in the Automobile Industry:

  1. Counterfeiting of auto parts, indeed, is IP or Intellectual Property theft as it can violate any or all of the primary IPR (Intellectual Property Rights), namely Patents, Trademarks, Designs & Copyrights. It leads to a loss of revenue or earnings to the OE manufacturer.
  2. I can be the tool of all manufacturers to make sure that innovation is in place, and a robust legal framework can check the loss of proprietor technology in favour of sub-standard copies.
  3. As the automobile industry develops and more inventions are introduced, there will be a greater & natural need to obtain and impose Patents by manufacturers.
  4. Designing a new vehicle is a costly & time-taking business. If a design or vital elements of a design are appropriated by other manufacturers, your investment will be lost.
  5. The framework gives a general solution to protecting the financial and intellectual aspects of a product. However, administrative loopholes like complex Patent filing, red tape, and costly litigations could end up dulling a brand’s reputation and as an outcome in revenue loss.
  6. With many vehicles entering the market featuring some level of automation & fully autonomous cars being tested on public roads, we require a new way to manage IPR in the automobile industry and solve the challenges facing autonomous vehicles and the modern automotive industry.

What is the Need for Managing IP Rights in the Automobile Industry?

Intellectual Property (IP) is among the most vital and valued business assets that a company owns. As technology & innovation are progressing at a quick pace, competition among automotive manufacturers & suppliers is as severe as ever; Intellectual Property (IP[1]) will be more vital than ever. During the 2009 to 2019 period, the Automobile Industry had the 3rd highest amount of Patents and Patent applications filed and in this period, the Automobile Industry experienced the 3rd highest percentage increase in Patent Application filings across the top 12 technology sectors, following only telecoms & computing.

This industry is separated into different categories, comprising security & safety, with all foremost vehicle manufacturers having joined or united the revolution in safety. Automobiles are more than transportation; they are the advanced technology owned by customers.

Historically, motor vehicle manufacturers & suppliers aimed at vehicle safety more in terms of engineering & technology features like seatbelts & airbags. Today, vehicle safety involves high-tech sensors, cameras, and other advanced technologies that mitigate automobile accidents. The latest technology permits vehicles to gauge their surroundings, alert drivers of capable threats and are equipped with features such as crash avoidance, auto-braking, and lane departure warnings.

IPR in the Automobile Industry: How to Manage?

Every Intellectual Property Rights are different and have their own functionality. The industrialists are competing with each other day to mark their existence in the industry. With Covid-19 relaxation favouring the Automobile Industry & the budget 2021 keeping the automotive industry on the top priority list, there is a critical need to know how can you manage your IPR amongst the heavy competition? Of all the Intellectual Property Rights, we must focus on all the three foremost IPR in the Automobile Industry, such as Trademarks, Design, and Patents.

  • Trademark and Automobile Industry: The importance of Trademark Registration or branding in this industry is always regarded as of the highest importance. The world is all about branding & promotions. If your brand is famous in the market, it adds to your asset & aids you increase your products’ sales. Brand value is determined if a customer is willing to pay more for one brand over the other, and it’s not always the product that makes up the brand value. Many big companies invest their time & money in designing their name, logo, design, and branding manual of their goods/products.
  • Patents and Automobile Sector: The Automobile Industry has witnessed a huge number of Patent filings both in India and other countries. The top IP tycoons of the Automotive Industry are TVS motors, Ford, TATA Motors, etc. Integration of computer applications to the Automobile Industry has increased the impact of Intellectual Property on this sector. This has been the significant reason for the upward trend in filing a Patent application.

Examining the lawsuits filed – earlier, the disputes were among the players of the sector or their suppliers. Curiously, after merging computers into automobiles, the nature of lawsuit filing has witnessed a paradigm shift. Increased licensing cases have been a boon for the Automobile Industry, which will keep growing and will make the industry turn into the market sector.

The current Automobile is the result of one lakh Patents and the keenness or dedication of millions of inventors. Automotive Industries of India have filed many applications for Patent Registration and using similar technologies in their product/good line to overwhelm the market competition.

  • Design and Automobile Industry: It is also one of the most important IPR in the Automobile Industry. The look of an automobile is the ultimate commercial feature of any Automobile Industry. Honda, Tata, Bajaj, Mercedes, etc., have already established their own brands with distinctive design impressions on a consumer. They are changing or varying their product lines both in financial and aesthetic terms in accordance with the altering customer tastes.


Intellectual Property should be registered in an industry with a long-term purpose. Recording, registering & identifying own Intellectual Property should be on the company plan. Indian Auto industry has to realise that an IPR is the essence of the current knowledge economy & would be able to hold the industry against a robust competitive market force. That would eventually lead to a new future for Indian Business and would participate in making the economy stronger by inspiring it with new & advanced technologies.

Read our Article:All You Need To Know About IPR in Mobile Applications

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A legal writing enthusiast, a wanderer, and a zealous reader. After gaining a lot of knowledge about the diverse legal topics and developing research skills, Karan joined the league of legal content writers to deliver quality-rich blogs.

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