Ford, Geely reach agreement on Volvo intellectual property rights
Chinese based Zhejiang Geely Holding Group and Ford Motor Co. have settled their issues concerning intellectual property rights that have been a hurdle as of late in their deal, whereas Geely would purchase Volvo from Ford.
Should the sale go through with the terms currently agreed upon, Geely will be in sole control of all technologies developed exclusively by Volvo. Volvo would also have access to any Ford technologies that are crucial to its future development, including those pertaining to safety and environment. Geely however, will not retain any ownership or access to those technologies, reports Automotive News.
Intellectual property rights are a sticking point in deals like this, where Chinese carmakers are to take over struggling foreign automakers. It was the inability to agree on intellectual property rights that caused a deal between Beijing Auto and GM whereas the former would buy Opel motors, to go sour back in July.
– By: Stephen Calogera