Continental Warns Against Pirated Tire Reproductions

* Safety standards not guaranteed for fakes
* Significant victories have already been achieved in the fight against product piracy
* Legal measures are taken where required

Hanover, November 7, 2007 -- International automotive supplier Continental issues an emphatic warning against counterfeit Continental products, from Asia in particular.

"Pirated reproduc­tions do not have the same material and processing quality as genuine products, and can quickly become a safety risk," emphasizes Manfred Wennemer, chairman of the Executive Board of Continental AG in Hanover. The company is taking decisive and comprehensive action against product piracy, and has already had several major successes in this connec­tion. For example, sales of truck tires produced in China with illegally-copied Continental treads were stopped in Germany. In Taiwan, claims for damages have been asserted against a dealer.

Continental issues an emphatic warning against counterfeit Continental products,
from Asia in particular. Pirated reproductions do not have the same material and
processing quality as genuine products, and can quickly become a safety risk.
The company is taking decisive and comprehensive action against product piracy.
Photo: Continental AG

Imitation products lead customers to expect quality and safety standards which the products cannot reach in practice. This can result in potentially fatal accidents. “Based on the exper­tise we have gained during many years of research, all divisions in our company develop products which contribute to increased road safety as well as added comfort," according to Wennemer. "In order to minimize the danger of product piracy, we do not develop and manufacture certain products or product components in critical regions."

The Commercial Vehicle Tires division recently fought back against the infringement of pat­ent rights. Counterfeit HSR 1 truck tires were marketed by various tire dealers in Germany under the name Goodride CR 976 A. While the tire was not a 100% copy, the specific Conti­nental tread, which is protected by a European patent, was clearly identifiable. Continental AG was able to prevent further sales in Germany; the tire dealers involved agreed to cease-and-desist without court proceedings.

Recently, the ContiTech division reached an important milestone: A Taiwanese dealer and a general importer were forced to pay damages at the market value of the original products after approximately 4,500 counterfeit multiple V-ribbed belts and approximately 13,000 empty packages with ContiTech designs were seized. As is usual in Taiwan after such legal deci­sions, the dealer was also ordered to make a public statement announcing their wrongdoing in the press.

The Automotive Systems division’s aftermarket unit, with its ATE brand, is also greatly af­flicted by product and trademark infringements. Imitation disk brake pads in a design similar to that of ATE were also impounded. A modified ATE logo and incorrect specifications on the product packaging made the counterfeit look like a genuine product and led customers to believe that they had bought a high quality product of the well-known brand. It was also dis­covered that ATE PowerDisc brake disks were being sold by persons outside the Continental Corporation without permission. A new product and trademark protection concept will protect the affected product groups against further product piracy in the future.

"We will keep our eyes open at all times and everywhere, in particular at regional and inter­national trade fairs. We are making every attempt to continue to prevent the manufacturing and sales of counterfeit Continental products," concluded Wennemer. "If forced to do so, we will not hesitate to use legal means."

According to OECD (Organization for Economic Cooperation and Development) estimates, the damage caused by product piracy in Germany alone amounts to 25 billion euros, and to 200 billion US dollars worldwide. Highly-innovative companies which spend a great deal of money on research and development, and who are significantly harmed by illegal copies, are particularly affected.

The Continental Corporation is a leading automotive supplier of brake systems, chassis components, vehicle electronics, tires and technical elastomers. In 2006 the corporation realized sales of EUR14.9 billion. At present it has a worldwide workforce of around 89,000.

Source: Continental AG

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