Chinese court awards damages to famous Tea Trademark Owner Guangzhou Pharma
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| Wanglaoji herbal tea, Image Credit- Beijing Review |
History…
- Both companies made and sold
Wanglaoji herbal tea, also known as Wong Lo Kat, a popular beverage that
originated in southern China in the early 19th century.
- In 1995, Guangzhou Pharma
sold to JDB the right to use the tea brand name for five years. When the
original deal expired in 2000, the two parties inked a new 10-year
licensing deal, which was later extended to 2020.
- In 2011, the brand owner
claimed that the agreements to extend the licensing deal, based on two
contracts in 2002 and 2003, were the result of bribery. It petitioned with
the China International Economic and Trade Arbitration Commission, which
ruled in 2012 that the extension agreements were invalid.
- Guangzhou Pharma demanded JDB pay
compensation for using its trademark between 2010 and 2012. It originally
asked for 1 billion yuan in payment, later raising its demand to 2.9
billion yuan.
Decision…
- The Guangdong High People's Court has ruled
that six subsidiaries of JDB Group should pay a combined
penalty of 1.44 billion yuan ($211 million) for trademark infringement
to Guangzhou Pharmaceutical Group, the owner of a prominent
herbal tea brand.
- JDB intends to appeal the ruling to the
Supreme People's Court whilst Guangzhou Pharma – appreciates the court
ruling that protected the centuries-old herbal tea brand of Wanglaoji.
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