The Times newspaper reports today that hopes of selling MG Rover as a going concern have suffered a fresh blow as SAIC has warned it would fight a lengthy legal battle with anyone who sought to acquire the car group’s intellectual property.
 
Intellectual property rights are a key issue because SAIC believes that it has already bought the exclusive rights to build the Rover 25, 75 and two engines.
 
But the Times report says that PricewaterhouseCoopers, the administrators to MG Rover, have also claimed that the British carmaker has retained the rights to the MG variants of those cars, which use 98 per cent common parts. PwC believes that the Chinese have exclusive rights over very little and nothing that would prevent carmaking beginning again in Longbridge.

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The newspaper said that Tony Lomas, one of the administrators, attacked the threat by SAIC as a ploy to frighten off buyers so that it could buy equipment at knock-down prices.


SAIC, which paid £67 million for its intellectual property, wants to buy tools and research and development equipment but is not interested in maintaining any operation at Longbridge.


A spokesman for SAIC told the Times: “We are confident about what we have purchased and we feel strongly enough that we are prepared to fight for it with a protracted legal battle.”


Mr Lomas told the Times: “We have had two sets of lawyers looking at this agreement. The MG variants of the 25 and 75 are only slightly different from Rover cars. It is interesting that the document was crafted to protect these.”

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Mr Lomas also said that it would be up to buyers to carry out their own due diligence but that it was PwC’s belief that the intellectual property issue was not a barrier, according to the report.