BMW, Merc to sue copycat Chinese

Frankfurt - German Chancellor Angela Merkel Tuesday criticized Chinese copies of German cars that are to be exhibited at the Frankfurt Motor Show next month, saying the plagarism is "a big problem" during a speech on the the second day of her visit to China.

"If suddenly a car is there and looks like a Smart, but isn't one, but is a copy not legally manufactured, that is not good," she said in an address to the Chinese Academy of Social Sciences in Beijing.

Germany will openly address problems of plagarism and copyright infringement, she added.

Chinese carmaker Shuanghuan plans to display two of its vehicles, the Noble and CEO, reportedly close copies of the Smart ForTwo subcompact car and the BMW X5 SUV, at the Frankfurt IAA international automobile exhibition that runs from September 13-23.

German carmakers DaimlerChrysler AG's Smart unit and BMW are threatening legal action if the cars will be presented at the auto show, according to Automobilwoche magazine.

China can achieve its own economic goals only if the protection of the intellectual property is also guaranteed, said Merkel in her speech.

"This is important for foreign companies as well as for innovative Chinese businesses." The laws to protect product piracy are in place in China, however the implemntation of them is still less than ideal, said Merkel, adding that more security measures are needed.

More than 1 046 exhibitors from 40 countries are expected at the IAA fair in Frankfurt, the industry's largest trade fair.

Carmakers are to unveil 88 world premiere models at the exhibition.

Four passenger car manufacturers are expected from China as well 50 component suppliers.