German defense firms Krauss-Maffei Wegman (KMW) and Rheinmetall have settled a legal dispute between them, meaning today’s lawsuit between the two sides has been dismissed. Tank builder KMW had filed a lawsuit because, according to the company, defense group Rheinmetall claimed intellectual property rights to the Leopard 2 tank in a newspaper interview.
Leopard tanks are manufactured by KMW, but Rheinmetall supplies important parts for them. Rheinmetall CEO Armin Papperger said in an interview with the Neue Zürcher Zeitung that his company holds the rights to a number of versions of the tank. “False and misleading,” thought KMW, after which it went to court.
That case was supposed to be heard today, but ended in a last-minute deal, the German court told DPA news agency. Details of that deal were not disclosed. Rheinmetall responds only briefly on its website: In a statement, the company points out that Rheinmetall and its CEO never intended the statements as a vindication of tank rights.
The company further writes that both sides have to make an important contribution to the security of Germany and its allies and therefore had to find a solution quickly.
“Neither Mr. Papperger nor Rheinmetall would make any statement that Rheinmetall has exclusive rights to the Leopard 2A4 main battle tank”
According to German correspondent Derk Marseille, competitor KMW has already asked the CEO to withdraw his statements. Since he refused, the company went to court. Marseille suspects that Rheinmetall is trying to use the lawsuit primarily as a PR campaign, because the defense group has ambitions to build its own tanks.
“We know a Rheinmetall tank is coming. The company is ambitious and has a completely different character from KMW’, says Marseille. ‘KMW is a French-German family business and twice as small as Rheinmetall. The company is saddened by the way Rheinmetall presents itself to the German media with the development of that new model.’
Pay with a smile
Even if Rheinmetall were to pay KMW compensation, the company would do so “with a smile,” according to Marseille. “The PR value of this lawsuit is greater to Rheinmetall than anything they ever could have directed themselves.”
According to Marseille, the two sides needed to resolve it. The two cannot live without each other. This is a squabble that benefits no one.’ Also, both companies have enough on their minds. ‘Germany wants to invest 100 billion in defence. Meanwhile, Rheinmetall also has to deliver existing orders to countries such as South Korea and the United States.’
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Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
