Court battle over car badge rights; LONGBRIDGE: Use of MG name for Riley company model sparks row.

Byline: By Jon Griffin

LONGBRIDGE'S Chinese owners are suing Midland car veteran William Riley in a David and Goliath courtroom battle over badge rights to the world's most expensive MG.

Nanjing Automobile, now part of the giant SAIC group, have issued High Court proceedings against Worcestershire-based Mr Riley over his launch of the turbocharged MG X-Power model.

The High Court showdown pits one of the Far East's biggest car makers against one of the few remaining UK car makers, with a current workforce of just 10.

A dispute between 63-year-old Mr Riley and the Chinese over the MG badge rights had rumbled on for over a year with arguments and counter-arguments over ownership lodged with the UK Patents Office.

But now the Chinese have raised the stakes dramatically by issuing High Court proceedings against Mr Riley and his Tenbury Wells-based MG Sports and Racing Europe Ltd firm, claiming trademark infringements.

The move jeopardises Mr Riley's plans less than a year after he launched the Worcestershire company in a pounds 2 million venture, selling turbocharged MGs for between pounds 75,000 and pounds 90,000. He later told the Mail of his plans to launch a 100,000 sq ft factory within the M5 corridor.

Mr Riley, the great grandson of the founder of the Riley car marque, filed a witness statement to the Patents Office which says he bought the intellectual property rights to the MG X-Power from administrators PricewaterhouseCoopers on June 27, 2007.

But Nanjing legal consultant Natalie Atkins said in a subsequent witness statement: "NAC has made it clear to Mr Riley and MG Sports and Racing Europe Ltd throughout that NAC is the owner of the global MG brand.

"NAC has also made it clear that NAC cannot allow MG Sports and Racing Europe Ltd to continue using the MG and/or the MG X Power names and has required undertakings from MG Sports and Racing Europe Ltd confirming that they would cease all further use."

CAPTION(S):

LEGAL WRANGLE... William Riley with an MG car.