Jiaduobao GP Group's 1.44 billion Behind | Packaging Patent Dispute and Bribery Case

Although there is a verdict, the battle for 'Wang Lao Ji' is still going on.

July 28, 2018, Guangzhou Baiyun Mountain (35.480, -0.49, -1.36%) Pharmaceutical Group Co., Ltd. (600332.SH, hereinafter referred to as 'Baiyun Mountain') About the controlling shareholder Guangzhou Pharmaceutical Group Co., Ltd. (hereinafter referred to as 'Guangzhou The first-instance judgment between the Pharmaceutical Group's and the Jiaduobao series company announced that the “Wang Laoji” trademark dispute between Guangzhou Pharmaceutical Group and Jiaduobao entered a new stage.

1.44 billion yuan in huge compensation

The first instance of the "Wu Lao Ji" trademark legal dispute case of the Guangdong Provincial Higher People's Court "Civil Judgment" (2014) Yue Gao Fa Min San Chu Zi No. 1" shows:

Guangdong Jiaduobao Beverage & Food Co., Ltd. (hereinafter referred to as 'Guangzhou Jiaduobao'), Zhejiang Jiaduobao Beverage Co., Ltd., Jiaduobao (China) Beverage Co., Ltd., Fujian Jiaduobao Beverage Co., Ltd., Hangzhou Jiaduobao Beverage Ltd., Wuhan Jiaduobao Beverage Co., Ltd. compensated Guangzhou Pharmaceutical Group Co., Ltd. for economic losses and reasonable rights protection fees totaling RMB 1,440, 557,200.

In the indictment, the amount of compensation claimed by GPHL is 2.9 billion yuan. At present, the Guangdong Provincial Higher People's Court has ordered the Jiaduobao series company to compensate about half of the amount claimed by GPHL. However, 1.44 billion The huge amount of compensation for the yuan is also rare in domestic trademark disputes.

The Economic Observer reported to Wang Laoji's operator, Guangzhou Wang Lao Ji Da Health Industry Co., Ltd. (hereinafter referred to as 'Guangzhou Wang Lao Ji') about the attitude of the case and whether it would appeal because the amount of the judgment was less than 2.9 billion yuan. Guangzhou Wang Laoji replied :

Wang Laoji respects the judgment of the law, and the legal recognition of the facts of Jiaduobao’s infringement is a further protection of the old brand of 'Wang Laoji', and also a warning for low-cost illegality. Regarding whether to appeal, it is necessary to ask the relevant department of higher authorities. After the study decided.

Jiaduobao did not show weakness.

On July 27, 2018, Jiaduobao (China) Beverage Co., Ltd. (hereinafter referred to as 'Jiduobao Company') issued a statement on the official website of the first instance of the Guangdong Higher People's Court:

On July 25, 2018, we received the first-instance judgment of the Guangdong Higher People's Court on the dispute over the trademark rights of Guangzhou Pharmaceutical Group v. Jiaduobao. Jiaduobao refused to accept the first-instance judgment and immediately appealed to the Supreme People's Court. The judgment will not take effect.

We insist that both Guangzhou Pharmaceutical and Jiaduobao are cooperative during the period from May 2, 2010 to May 19, 2012, and fulfill their obligations under the agreement. Jiaduobao does not have the so-called infringement problem. The cooperation relationship between the two parties, the Supreme People's Court made a full statement and recognition on the judgment of the red can decoration case on August 16, 2017 (the case number: '2015' Min San Zhong Zi No. 3), sharing the judgment of the red can decoration The result is based on the background of the two years of cooperation, historical causes and consumer perception. Jiaduobao uses the trademark agreement and pays the usage fee. In the process of use, Guangyao also actively cooperates and recognizes. In 2010, Guangyao issued Many letters and Jiaduobao carried out brand promotion and promotion in the Asian Games held in Guangzhou in November of the same year. During this period, the cooperation between the two parties was smooth and pleasant, and Jiaduobao made painstaking efforts for brand promotion. The investment has greatly enhanced the brand value. The Supreme People's Court's '2015' Min San Zhong Zi No. 3 judgment also found that during the cooperation period, Jiaduobao made a positive contribution to the accumulation of Wang Laoji brand goodwill.

Jiaduobao (China) Beverage Co., Ltd., Jiaduobao Company was registered in March 2004 with a registered capital of 12 million US dollars. The legal representative is Zhang Shurong. In the above statement, it said that Jiaduobao has been opened. Three-year listing plan.

Behind Jadobo is Hong Kong Hongdao Group. The actual controller of Hongdao Group is Chen Hongdao, a Hong Kong businessman known as 'The Herbal Tea King'. In the public information, Chen Hongdao is described as: He operates the red canned Wang Laoji herbal tea. With sales exceeding RMB 10 billion, it has become the No. 1 brand in China's canned beverage market with sales exceeding Coca-Cola and Pepsi, leading Wang Laoji to become the “China's No. 1 Can”. In 2016, Hurun Report's Chen Hongdao was 18 billion in wealth. Ranked 132th on the list.

Packaging patent dispute and bribery case

In today's herbal tea market, Jiaduobao and Wang Laoji are in a position of hegemony. It is difficult for consumers to distinguish the difference between Jiaduobao herbal tea and Wanglaoji herbal tea because they come from the same formula, which is derived from Wang Zebang, the founder of Wang Laoji.

Before 2010, Jiaduobao Company under Hong Kong Hongdao Group was authorized to operate Wanglaoji herbal tea beverages in mainland China. Jiaduobao Company cultivated the domestic herbal tea consumption market and promoted Guangzhou herbal tea to all of China. Drinking Wang Laoji's classic slogan has been used ever since.

After the Guangzhou Pharmaceutical Group filed a trademark infringement lawsuit against Jiaduobao in 2012, Jiaduobao launched a red canned herbal tea in the market - Jiaduobao.

After losing the operating authorization of Wang Laoji, Guangzhou Jiaduobao filed a countersuit against Guangzhou Wang Laoji on the red can packaging patent.

The Supreme People's Court Civil Judgment ' (2015) Min San Zhong Zi No. 2' obtained by the Economic Observer shows many details in the process of the contest.

Hong Kong Hongdao Group operated the red tank Wang Laoji before 2010. It is legal and reasonable, and there is no infringement. However, because Chen Hongdao’s bribery led to the renewal of the contract, Wang Laoji authorized the Jiaduobao operation contract to be invalid until 2020. However, during the operation, Hong Kong Hongdao The group and Jiaduobao Company have improved the design of the red pot Wang Laoji herbal tea and sold it on the market.

Jiaduobao believes that he enjoys the packaging and decoration patent of the red can Wang Laoji. After losing the Wanglaoji brand authorization, Wang Laoji cannot use the red can packaging.

The judgment of the Supreme Court shows:

On February 13, 1997, Hongdao Group and the former owner of the Wang Laoji trademark, Wang Yangji Pharmaceutical Co., Ltd., Wang Laoji Food & Beverage Branch (hereinafter referred to as 'Yangcheng Pharmaceutical Industry Co., Ltd.) signed the "Trademark Licensing Contract", stipulated Yangcheng Pharmaceutical Licensing Hongdao Group and its investment companies exclusively use Wang Laoji trademark to produce red canned herbal tea. On May 2, 2000, Hongdao Group signed a Trademark License Agreement with GPHL, and the licensing conditions are basically the same as the above agreements. The company is a wholly-owned subsidiary of Hongdao Group in Dongguan, Guangdong Province. It is responsible for the production and sales of red pot Wang Laoji herbal tea. On June 14, 1997, Chen Hongdao obtained the design patent for the red pot Wang Laoji herbal tea, and approved the implementation of Jiaduobao Company. For the production of Wang Lao Ji herbal tea. The product formula of the red pot Wang Laoji herbal tea is also owned by Jiaduobao Company.

On June 3, 2012, Guangzhou Wang Laoji held a red pot Wang Laoji herbal tea new listing ceremony in the Badaling Shuiguan Great Wall in Beijing, publicly selling its production of red cans 'Wang Lao Ji' herbal tea, the outer packaging of its products and the red cans produced by Jiaduobao Company. Wang Laoji herbal tea products are very similar.

In order to win the lawsuit, Chen Hongdao also moved to Hong Kong designer Pan Liangsheng to testify. Pan Liangsheng stated that it is the sole proprietor of SUN-NINGPRINTINGDESIGNCO (shareholders' meaning), which designed many cans and papers for Chen Hongdao. Boxed, bottled items, red cans Wang Laoji packaging began design in 1995, 1995 for the first stage design, February 1996 for the second stage design, July 1998 for the third stage design.

Jiaduobao hopes that the red can Wang Laoji will stop production and sales, but the court ruled that Jiaduobao’s appeal is not established. The packaging and decoration of the red can Wang Laoji is inseparable from the trademark.

The Supreme People's Court upheld the original judgment. On the market, the red tank Jiaduobao and the red pot Wang Laoji coexisted, and the two became the largest herbal tea drinks in China, which is almost difficult to separate.

On July 27th, some investors questioned Baiyun Mountain through the Shanghai Exchange E interactive platform. 'More than 1.4 billion compensation for Jiaduobao, why has no impact on the company's performance?' Baiyun Mountain, a subsidiary of GPHL, is in 7 Both the 24th and July 27th announcements stated: 'It is expected that this judgment will not affect the company's current or future profits.'

At present, the above lawsuit is still in the appeal stage, and the amount of compensation is awarded to Guangzhou Pharmaceutical Group.

The head of the brand of Baiyun Mountain told the Economic Observer that everything about the case is subject to the announcement.

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