Two German companies that jointly build the Leopard 2, one of the world’s most advanced battle tanks, are embroiled in a legal dispute over intellectual property rights, despite an increase in orders due to the war in Ukraine, Reuters reported.

Leopard 2A4 main battle tanks that Spain will send to UkrainePhoto: FabiáN SimóN / Zuma Press / Profimedia

Rheinmetall, which came under the spotlight last year as Germany increased defense spending, is suing Krauss-Maffei Wegmann, with a hearing in a Munich court scheduled for May 2.

Under pressure from its allies, the German government agreed this year to send Leopard tanks to Ukraine, one of the most important weapons Kyiv has requested as it prepares for a counteroffensive against Russian forces.

Düsseldorf-based Rheinmetall makes the cannon for the Leopard 2 tank, while Munich-based KMW makes the chassis.

It all started with statements by Rheinmetall’s chief executive, Armin Papperger, in an interview with the Neue Zuercher Zeitung newspaper in March, in which he said that Rheinmetall owned the rights to the Leopard 2A4.

The district court in Munich said KMW is seeking legal protection to prevent Rheinmetall from making what it considers “false, misleading statements of fact that infringe its rights”.

KMW and Rheinmetall declined to comment.

It was not immediately clear what impact, if any, the dispute might have on cooperation between the two companies, which last week jointly announced an order for the German military to upgrade 143 Puma combat vehicles. The order is valued at approximately 770 million euros.

Increased defense spending pushed Rheinmetall to profits last year and led to the company’s inclusion in Germany’s DAX blue-chip index, which tracks the performance of the 40 largest companies.

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