Zotye Automobile ordered to pay 29.5 million yuan in IP dispute

Zotye Automobile Co., Ltd. recently received a final civil judgment from the Zhejiang Provincial Higher People's Court, ordering the company to pay Shanghai Sizhi Automobile Engineering Technology Co., Ltd. 29.5 million yuan. This payment is for intellectual property authorization and overdue interest, which accrues from August 1, 2023, at 1.5 times the one-year Loan Prime Rate (LPR). The judgment is a final ruling and may significantly impact Zotye Automobile's financial performance.

The dispute stemmed from an intellectual property contract disagreement, where Shanghai Sizhi sought payment for authorized license fees and overdue interest. Zotye Automobile had countersued to terminate the intellectual property contract between the parties. The initial ruling by the Jinhua City Intermediate People's Court had terminated the contract and rejected Shanghai Sizhi’s claims.

However, the Zhejiang Provincial Higher People's Court partially reversed the first-instance judgment, maintaining the contract termination but ordering Zotye Automobile to make the payment. Zotye Automobile has confirmed no other material undisclosed litigation or arbitration matters as of the announcement date.