The Telosys generator engine is now configured to use UTF-8 (for input and output). Which tool are you using Telosys CLI or Eclipse Plugin ? If it's the Eclipse Plugin may be there's a problem in the editor. Could you try to edit a template ( .vm file ) with an editor supporting multiple encoding (like Notepad++) to check if the file is really in UTF-8 ? Or just give us a .vm file for tests