What is the record of the highest compensation in the Wang Laoji trademark dispute case?

The commercial dispute between Wang Laoji, an herbal tea brand owned by Guangzhou Pharmaceutical Group, and its competitor JDB has added another victory.

On July 27, Baiyunshan, a listed company, announced that the controlling shareholder Guangzhou Pharmaceutical Group recently received the first-instance "Civil Judgment" of the Guangdong High Court on the "Wanglaoji" trademark legal dispute case.

According to the judgment, Guangdong Jiaduobao Beverage and Food, Zhejiang Jiaduobao Beverage ****, Jiaduobao (China) Beverage ****, Fujian Jiaduobao Beverage ****, Hangzhou Jiaduobao Beverage ****, and Wuhan Jiaduobao Beverage **** (hereinafter referred to as "Liujiaduobao Company") compensated Guangzhou Pharmaceutical Group **** (hereinafter referred to as "Guangzhou Pharmaceutical Group") for economic losses and reasonable rights protection expenses totaling RMB 100 million; Half of the case fee shall be borne by the plaintiff and the defendant.

This amount set a record for the highest compensation among JDB's many commercial disputes with Wanglaoji.

Baiyunshan said that the judgment will not have an impact on the company's current or future profits.

In addition, the Guangzhou High Court rejected the other litigation claims of Guangzhou Pharmaceutical Group.

The acceptance fee of the case is about 10,000 yuan, which is borne by Guangzhou Pharmaceutical Group **** and 10,000 yuan by JDB Company.

In 2010, GPC granted JDB's parent company, Hongdao Group, the lease right of the "Wanglaoji" trademark and the production and operation right of "Hongcan Wanglaoji", expired. A conflict between the two sides over the trademark dispute broke out. In May 2012, the China International Arbitration Commission (CIAC) ruled that:

Since May 3, 2010, Hongdao Group has no right to use the trademark "Wanglaoji". The two sides then engaged in a years-long herbal tea war. In July 2012, the Beijing No. 1 Intermediate People's Court finally ruled that JDB would prohibit the Wanglaoji trademark.

The trademark dispute could have ended here, but in 2014, GPC suddenly decided to file a lawsuit with the Guangdong Provincial High Court, alleging that six JDB companies, including Guangdong JDB Beverage & Food ****, infringed the registered trademark of "Wang Laoji" of GPC, causing an economic loss of 1 billion yuan to GPC. In February 2015, GPC changed the claim amount of RMB 1 billion to RMB 2.9 billion.

Subsequently, the six JDB companies filed a counterclaim with the Guangdong High Court, requesting the Guangdong High Court to order: Guangzhou Pharmaceutical Group to compensate JDB for economic losses of 1 billion yuan; The counterclaim litigation costs shall be borne by GPC. However, the Guangdong High Court did not accept this counterclaim, and JDB subsequently appealed to the Supreme People's Court.

On November 9, 2015, the Supreme People's Court of Guangdong Province issued a ruling, finding that the counterclaims filed by the six JDB companies did not meet the conditions for acceptance, rejecting JDB's appeal and upholding the original judgment.

In July 2018, the Guangdong High People's Court made a first-instance judgment on the "Wanglaoji" trademark dispute between Guangzhou Pharmaceutical Group and six JDB companies, and the six JDB companies lost the lawsuit and compensated GPC 100 million yuan.

Since the outbreak of the feud between Wang Laoji and Jia Duo Bao in 2012, the two have resorted to court many times over the dispute over red can packaging, and Jia Duo Bao and Guangzhou Pharmaceutical have repeatedly resorted to court on matters such as the right to use the "Wang Lao Ji" trademark, herbal tea formulas, advertising slogans, etc. However, judging from the judgment results, JDB rarely wins, with a cumulative compensation amount of more than 1.6 billion yuan.

With the fall of the final judgment of the "matching plan", JDB may not be able to say the phrase "exclusive authentic formula" in the advertisement. On July 19, the Guangdong High Court made a final judgment on Wanglaoji Jiaduobao's "matching plan", rejecting Jiaduobao's appeal and upholding the original judgment. At the end of last year, the Guangzhou Intermediate People's Court ruled in the first instance:

JDB immediately stopped the infringement of false publicity and commercial defamation involved in the case, and compensated Wang Laoji for economic losses and reasonable rights protection costs of 5 million yuan, and at the same time, it was also required to publish a statement and publicly apologize on the homepage of "Guangzhou**" and JDB Group's official website. In fact, the end result of this three-year-long battle over "recipes" is that both formulas are authentic. According to public information, since June 2013, the court has pronounced judgments on a total of 8 cases involving Wang Laoji and JDB, involving trademarks, decoration, advertising slogans and other acts, and JDB currently needs to pay nearly 200 million yuan in compensation.

In 2013 alone, JDB's advertising cost for the title "The Voice of China" was as high as 200 million yuan. It is not yet known who will be the ultimate winner in this endless litigation dispute.

The grievances and feuds between JDB and Guangzhou Pharmaceutical Group did not end with the determination of the ownership of the trademark right of "Wang Laoji", and the two sides began to fiercely confront each other in the decoration of "red cans", secret recipes and advertising slogans, and all sectors of society also issued various opinions for or against. On the whole, "Wanglaoji", as a time-honored brand, has a deep historical precipitation and rich forms of expression, which cannot be summarized and occupied by just one trademark. The value of the "Wanglaoji" trademark must be based on the secret recipe of herbal tea and its product itself, and without the commodity, the value of the trademark is not only impossible to talk about, but also becomes meaningless.

The "Wang Laoji" trademark is now bearing the weight that the Guangzhou Pharmaceutical Group is chasing but it cannot bear, just like the wings of Icarus in Greek mythology, because they flew too high, the wax used to attach the wings was melted by the sun and fell off.

*1. The "Wanglaoji" dispute between JDB and GPC*Event review:*1. Due to historical reasons, after 1949, the Wanglaoji brand in the mainland and overseas belonged to different companies. The mainland owner of the Wanglaoji brand is Guangzhou Pharmaceutical Group, a state-owned enterprise.

The ownership of Hong Kong and overseas brands belongs to Wang Jianyi, the descendant of Wang Zebang, the founder of "Wanglaoji" In February, Guangzhou Yangcheng Pharmaceutical Co., Ltd., a subsidiary of Guangzhou Pharmaceutical Group, signed a trademark license contract with Hong Kong Hongdao Group. The contract stipulates that Hongdao Group has obtained the exclusive right to use the trademark "Wanglaoji" to produce and sell red paper packaging and red canned herbal tea beverages.

Years later, Hong Kong Hongdao Group established JDB Company to be responsible for the production and operation of Wang Laoji in the mainland. *4. JDB's sales in 2002 were less than 200 million yuan, and soared to more than 5 billion yuan in 2007, especially in 2008, JDB's donation of 100 million yuan to the Sichuan ** disaster area and marketing promotion made Wanglaoji famous, and JDB's sales were as high as 12 billion yuan in November of that year, Guangzhou Pharmaceutical Group announced that the brand value of Wanglaoji was assessed as 100 million yuan, and the green boxed Wanglaoji of Guangzhou Pharmaceutical Group also saw a surge in sales during the same period with the help of the momentum of red can Wanglaoji.

6. GPC argued that in 2001, after Li Yimin, then general manager of the group, received a bribe of 3 million yuan from Chen Hongdao, the controller of Hong Kong Hongdao Group (JDB's parent company), the trademark authorization signed under this circumstance should have been invalid, so the lease to JDB expired in May 2010. *7. In the end, GPC withdrew the trademark right of "Wanglaoji".

The specific process is as follows

Fine-end automation equipment****; Jia Duo Bao is still Jia Duo Bao, Wang Laoji is not Wang Laoji.

It's not a conclusion, it's a trademark valuation. There is a lot of value in the meaning of a trademark.

It is based on the evaluation of the brand value of Wanglaoji.

Brand benefits. What percentage of the company's earnings are generated "under the banner of the brand"?

First, determine the percentage of the company's total revenue generated by each business that uses the brand.

Infrastructure investment is deducted from brand revenue. This ensures that the calculated value is entirely beyond the value that the investor would have earned on any investment in the brand, i.e. the value that the brand adds to the business. This provides a bottom-up view of the brand's business revenue.

Brand contribution. How much of the above brand revenue is generated by the brand's close relationship with its customers?

Only a portion of these gains can be considered driven by brand equity. This is known as "brand contribution", which reflects the extent to which a brand plays a role in generating revenue.

This is based on an analysis of the results of country, market and brand-specific customer surveys in the Brandz database.

Brand multiples. What is the growth potential for brand-driven revenue?

In the final step, the growth potential of these brand earnings will be taken into account. Financial** and consumer data are used. We use the methodology used by the analyst community to derive the return multiples. The metric also takes into account brand-specific growth opportunities and obstacles.

The Brand MomentumTM measure, which represents the growth of each brand, is based on this assessment. The indicator is displayed as an index on the scale of 1 to 10 (highest).

The Wanglaoji trademark was originally a time-honored brand, but in that special era in China, there was a public-private partnership. At that time, it was the need for socialist transformation. With the development of China's economy, China has moved towards the route of market economy.

And many of these time-honored public-private enterprises have become state-owned assets. Wang Laoji has also gone through such a stage, and his descendants are still operating this brand overseas. Later, Wang Laoji's descendant, Hong Kong Hongdao Group, wanted to re-develop the mainland market, so there was a case of buying a trademark license from the mainland Fangguang Pharmaceutical Group.

Although the Hong Kong side lost this trademark, JDB's emotional investment in the mainland, including the 100 million donation in Wenchuan**, has been recognized by many people, and JDB has indeed poured its heart and soul into "Wang Laoji". Although GPC won the trademark, it seems that not many Chinese people feel proud of it. I hope that "Wanglaoji" will have better development, and win with quality and service.

The above is compiled by Beijing Gongteng Intellectual Property ****** Consultant Liu, if you have any opinions, please welcome to exchange. There are many time-honored trademarks similar to the Wanglaoji trademark that face this situation, such as Beijing Xinyuanzhai, etc., and the descendants of the brand have been running for the trademark.

First of all, JDB obtained the extended right to use Wanglaoji's trademark through bribery at a low price, which in itself shows that its business ethics are problematic! has earned tens of billions of dollars on the Chinese people, and donating 100 million is the biggest advertisement! It's worth more than the ** TV station!

Give up a little money to make a lot of money, this is a place worth learning from Guangzhou Pharmaceutical Co., Ltd.! China's beverage market cannot be occupied by Coca-Cola in the United States and Master Kong in Taiwan! China should have its own strong, high-quality national brand!

First grow up in your own country, and then go abroad to develop the market and make foreigners' money! We must love and support our own national brand, only in this way can our national and our country be truly rich and strong! Only when we get rich first can our country become strong later!

What is actually being fought now is an economic war! Now is the most dangerous time, we 1.3 billion Chinese maintain our market and support our famous brands! Let the profits stay in your own home as much as possible and develop your own country!

China's Wang Laoji is our position to compete with Coca-Cola in the United States, and we can't compete with each other for profit! Support and support the national brand, and always support Wang Laoji! China must win this economic war, and an excellent national brand is the most powerful!

How many of these ** have we already been acquired by outsiders at a low price! Then we will earn our money, and finally we will bully us Chinese through foreign media, incidents, crises, and poverty! Wang Laoji, our own Coca-Cola in China!

Every Chinese with a conscience supports you! Always support a national brand like Wanglaoji! Every one of us Chinese should take action, and take action bit by bit to make our country rich and strong!

This is our eternal honor and responsibility! We young people should be pioneers! If you want to drink, drink Wang Laoji!

I just want to say that if Hongdao Group had made its own brand of herbal tea at that time, and its own brand would have become famous, there would have been nothing to do with Wang Laoji. Now that the trademark is gone, the brand effect that I have worked so hard to make will be snatched away by Guangyao. Is it worth the three words of Wang Laoji or JDB's painstaking management and quite correct investment and development vision?

Everyone knows it in their hearts.

Otherwise, as soon as Guangyao won the lawsuit, it began to imitate JDB's red can to produce Wang Laoji, and the taste was different from its original green box and changed to JDB's sweetness?

JDB lost unjustly, this time is just a lesson, integrity in business is the most important, I believe JDB can make a comeback.

On the other hand, in GPP, it is your own people who accept bribes, and the brand is made by others. Just go to jail and fight a lawsuit, just want to sit back and enjoy the results?

Anyway, I support JDB, people donate hundreds of millions of dollars to your so-called national brand?

Isn't it too late to think about establishing a corporate image after a lawsuit?

Guangyao is still making eight-treasure porridge or something in the name of Wang Laoji, and this business philosophy makes me laugh when I look at it.

Chengjia Duobao has done Wang Laoji, and now he dares to shout slogans to make how many billions a year, why don't you see what results you had before?

If you have the ability to make Wang Laoji without producing red cans, you can rely on your own green box to make Wang Laoji?

If you start producing red cans now, won't it be clear that you are bullying many people and don't know that this red can is not another red can?

Anyway, I said, I'm afraid of getting hot and Jia Duo Bao, so I drink Jia Duo Bao for herbal tea.