Daimler close to calling it quits on Smart ForTwo copyright lawsuit

Chinese automakers are not known for their strength on the global stage, but Chin's Shuanghuan is preparing to take down its second German powerhouse. Shuanghuan defeated BMW earlier this year in a case that claimed the company's CEO SUV too closely resembled BMW's first-generation X5, and now the Chinese car maker is looking dominate in a case involving Daimler's Smart ForTwo.

Daimler's lawsuit for copyright infringement against Shuanghuan dates back nearly a year, but the case has lost significant momentum over the last few months, leaving the German automaker with few other options other than dropping the case altogether. Daimler claims that Shuanghuan's Bubble is a blatant clone of the company's Smart ForTwo.

Although the case looked promising for Daimler early on, a Milan court ruling in favor of Shuanghuan in the BMW case may have put the nail in Daimler's coffin. The court found that visual and price differences between BMW's X5 and Shuanghuan CEO were enough to prevent consumers from confusing the two. Daimler's case against Shuanghuan is being held in front of the same Milan court.

Daimler has yet to officially drop the lawsuit, but if the German automaker pursues the case, it could be held liable for Shuanghuan's lost sales.