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GM Daewoo files action on Russian car 'copying'

SEOUL -- GM Daewoo, the South Korean subsidiary of U.S. giant General Motors, said Tuesday it has launched a court action to prevent a Russian automaker's local unit from allegedly copying one of its cars.

“On Monday we filed a petition with the Seoul central district court to prevent TagAZ Korea from breaching our intellectual property rights and trade secrets,” a GM Daewoo spokesman told AFP.

The petition seeks an injunction to stop TagAZ from developing, manufacturing, selling and exporting copied products and from using and disclosing GM Daewoo's trade secrets, he said.

Prosecutors said this month that two former GM Daewoo engineers now working for TagAZ Korea have been arrested for allegedly leaking core technology to the Russian firm.

Investigators said one man was suspected of stealing 6,000 computer files containing information on engine and parts designs and other key technology linked to GM Daewoo's Lacetti compact sedan.

They said the data is believed to have been used to develop a new model unveiled in Russia this summer.

Police said a third man, an executive of TagAZ Korea, committed suicide after leaving notes asserting his innocence.

“When prosecution authorities complete investigations into the case, we will consider filing a damages lawsuit against TagAZ Korea,” said the GM Daewoo spokesman, Kim Sang-Won.

The cost of developing a model such as the Lacetti averages around 300 billion won (US$245 million), GM Daewoo said.

A TagAZ Korea official said his company had no comment pending completion of the investigation by prosecutors.

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