• 24.08.2024

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Medtronic Cuts Ties with Li Auto: Controversy and Legal Fallout Explained

Aug 21, 2024

On August 19, a statement from Medtronic circulated on social media regarding Li Auto. The statement announced, “After careful consideration and thorough evaluation, Medtronic Medical Technology Co., Ltd. decides to terminate all relations with Li Auto effective immediately.” The statement also detailed the reasons. “Before signing a formal cooperation agreement with Li Auto, we cannot issue related promotions. Our intention was to seek a compromise, but Li Auto misused our apology letter for promotion, maliciously defaming Medtronic. We strongly condemn Li Auto and its founder, Li Xiang, for their unethical behavior,” the statement said. Notably, the statement was dated August 20, 2024. On the same day, Li Auto’s legal department stated that it had never engaged in any business discussions or collaborations with Medtronic Medical Technology Co., Ltd. Li Auto clarified the facts through its legal department’s official Weibo on July 12. In response to the rumors spread by Medtronic, Li Auto has reported the matter to the police.

Medtronic Cuts Ties with Li Auto: Controversy and Legal Fallout Explained

The Legal Department of Ideal Auto revealed the incident details. On a day in June 2024, Li Xiang went out to eat. A passerby claimed to be an Ideal Auto owner and took a photo with him. On the evening of June 22, various online platforms spread rumors about Ideal Auto’s AI medical cooperation with Yishide, along with photos of Li Xiang. On June 25, Ideal Auto sent a lawyer’s letter to Yishide. The letter demanded that Yishide stop the infringement and assume legal responsibility. On July 3, a person claiming to be a company employee, Zhou, contacted Ideal Auto’s Legal Department. According to Ideal Auto officials, someone suggested using the incident for marketing to increase traffic. Ideal Auto rejected this idea. Reports indicate that the communication with Ideal Auto’s Legal Department included topics like “Yishide unilaterally stopping discussions with Ideal Auto on AI fatigue driving monitoring and sudden death monitoring,” “Yishide’s unilateral halt of cooperation leading to Ideal Auto’s lawsuit,” and “both parties issuing press releases and hiring online influencers to create buzz.”

Medtronic Cuts Ties with Li Auto: Controversy and Legal Fallout Explained

Tianyancha shows that Yishide Medical Technology Co., Ltd. was established on November 2, 2022. The registered capital is 100,000 yuan (14010$). The company focuses on technology promotion and application services. Zhou Shixin is the legal representative. The major shareholder is Zhou Zihan, who holds 100% of the shares. Zhou Shixin serves as the executive director. Zhou Zihan acts as the supervisor.