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Best of Chinese Commentators

31 May 2012

China’s International Economics and Trade Arbitration Commission (CIETAC) has ruled that Guangzhou Pharmaceutical (600332:SHA), the original trademark owners of popular herbal tea brand Wang Laoji, should henceforth own the rights to the trademark, rather than JDB Group, which has been producing Wang Laoji in its distinctive red can since 1997. JDB licensed the trademark from Guangzhou Pharmaceutical, in a deal that was extended until 2020, but the latter argued that its former vice president, Li Yimin, had taken bribes prior to signing those contracts. JDB has rejected the ruling, but in the meantime has launched a new herbal tea brand, Jia Duo Bao.

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