Are copycat cars a sincere form of flattery?

Roland Jones Business news editor • Profile • E-mail

When Lexus pulled the covers off its 2008 LS hybrid at the New York Auto Show last week, its elegant styling and sleek shape drew murmurs of admiration from the throng of reporters gathered to witness the luxury sedan’s debut.

But its unmistakable resemblance to the Mercedes S-Class also raised a few eyebrows.

It’s no secret that Lexus, long the number-one luxury brand in the United States, has set its sites on competing with European luxury passenger car brands like Mercedes and BMW. But the contours of the new Lexus LS hybrid, its headlights and even its state-of-the-art safety features, were strongly similar to the celebrated S-Class, showing that, while imitation may be the sincerest form of flattery, in the automotive industry it has become a way to challenge the dominance of your rivals.

“Why are cars made by Mercedes and Lexus looking the same? Because Lexus is going after a European look, and that’s what’s selling these days,” said Kevin Reale, an automotive industry analyst at AMR Research. “Cadillac’s lines are a lot sharper, but the smoother European lines are more popular. So in the end we have to ask ourselves if this is plagiarism, or if it’s just a case of understanding what the customer wants?”

Toyota launched its Lexus luxury car brand over a decade ago as a low-cost alternative to European luxury cars, and since then it has produced a series of very Mercedes-like cars, at one point a few years ago drawing the ire of the German carmaker for what Mercedes reportedly called “copycat cars.”

When it comes to imitating a winning formula, Lexus is not alone of course. As vehicle manufacturers continually strive to perfect their product in a fiercely competitive marketplace, they may “borrow” successful styling from other carmakers. Some worried carmakers are even reluctant to show off new models too early for fear their design is quickly copied by a rival.

Recent examples of imitation include Toyota’s MR2 roadster and the highly successful Porsche Boxster, or the Chevrolet HHR and the PT Cruiser. Styling replication can sometimes get hostile, such as in 2004 when General Motors filed a lawsuit against China’s state-owned car producer Chery Automobile, alleging Chery’s QQ copied the design of the Matiz, a mini car developed by its South Korean affiliate Daewoo. Chery said it developed the QQ on its own, but GM disagreed — and won a settlement in the case.

Intellectual property is sacrosanct, but only to a certain degree, notes Bruce Sunstein, who heads the Patent Practice Group of Bromberg & Sunstein LLP in Boston. Sunstein says most car manufacturers would likely argue that the unique appearance of their car, such as the shape of the grille, is significant, and so if someone copies it that can become an issue of “trade dress” infringement, because the appearance of the product is something protected by trademark.

“Generally, you can’t win unless the consumer is confused by what they see, so if you recognize a car is a Lexus and think it looks like a Mercedes, generally that’s not enough,” he added.

There’s an argument to be made that one car can end up looking like another through no particular intention notes AMR’s Reale. An issue for the automotive industry right now is the movement of designers between automotive manufacturers, he said. A Chrysler designer may move to General Motors, or another car company, but that designer will take his design expertise with him.

“How do you patent a concept or style that’s inside someone’s head?” Reale said. “What we have seen and will continue to see is if there is a successful designer they’ll be in demand, and if they have certain style at one company, it will probably be there when move to another company. Change one line on a car’s outline and all of sudden its totally different vehicle.”

Similarly, the framework a vehicle is built on has an influence on its overall look, said Reale. Some manufacturers use the same platform for difference vehicle brands and lines, giving them a similar look. Manufacturers also use other manufacturers’ platforms to save money. “Is that component plagiarism or simply two automobile manufacturers engaging in cooperation?” Reale asked.

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