---
title: "First-instance verdict in the 2.9 billion yuan herbal tea trademark case: JDB ordered to pay Guangzhou Pharmaceutical 1.44 billion yuan"
description: "The long-running herbal tea trademark case has finally received a first-instance verdict. On July 27, according to the announcement by Guangzhou Baiyunshan Pharmaceutical Group Co., Ltd. regarding the legal dispute over the Wanglaoji trademark, the Guangzhou Higher People's Court ruled that JDB must compensate Wanglaoji's parent company, Guangzhou Pharmaceutical Group, a total of approximately 1.44 billion yuan, while the original claim was 2.9 billion yuan. However, this is only a first-instance judgment, and JDB still has the opportunity to appeal to the Supreme People's Court."
author: "金晓岩"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2018-07-29"
language: "en"
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# First-instance verdict in the 2.9 billion yuan herbal tea trademark case: JDB ordered to pay Guangzhou Pharmaceutical 1.44 billion yuan

> The long-running herbal tea trademark case has finally received a first-instance verdict. On July 27, according to the announcement by Guangzhou Baiyunshan Pharmaceutical Group Co., Ltd. regarding the legal dispute over the Wanglaoji trademark, the Guangzhou Higher People's Court ruled that JDB must compensate Wanglaoji's parent company, Guangzhou Pharmaceutical Group, a total of approximately 1.44 billion yuan, while the original claim was 2.9 billion yuan. However, this is only a first-instance judgment, and JDB still has the opportunity to appeal to the Supreme People's Court.

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The long-running herbal tea trademark case has finally received a first-instance verdict. On July 27, according to the announcement by Guangzhou Baiyunshan Pharmaceutical Group Co., Ltd. regarding the legal dispute over the Wanglaoji trademark, the Guangzhou Higher People's Court ruled that JDB must compensate Wanglaoji's parent company, Guangzhou Pharmaceutical Group, a total of approximately 1.44 billion yuan, while the original claim was 2.9 billion yuan. However, this is only a first-instance judgment, and JDB still has the opportunity to appeal to the Supreme People's Court.
A reporter from China Times saw in the above announcement that the judgment requires six JDB subsidiaries, including Guangdong JDB, Zhejiang JDB, and Fujian JDB, to bear joint and several liability for compensation.
In fact, two years have passed since the case was first heard.
Previously, on the morning of June 24, 2016, Guangzhou Pharmaceutical sued JDB for 2.9 billion yuan in compensation, alleging that JDB infringed on the Wanglaoji trademark usage rights from May 2010 to May 2012. The case was first heard in the Guangdong Higher People's Court.
It is reported that this is the largest infringement claim in the field of intellectual property in China. At the time, the lawyers for both sides engaged in fierce debate over three main points of contention: whether JDB's actions constituted infringement; if so, whether Wanglaoji's claim for 2.9 billion yuan in compensation was reasonable; and whether JDB should bear joint liability.
In May 2014, Guangzhou Pharmaceutical Group sued JDB, demanding compensation of 1 billion yuan for economic losses caused by infringement of the registered trademark "Wanglaoji" from May 2, 2010, to May 19, 2012. Later, in February of last year, the original claim amount of 1 billion yuan was increased to 2.9 billion yuan.
Facing Wanglaoji's huge claim, JDB filed a counterclaim with the Guangdong Higher People's Court, requesting that Wanglaoji compensate JDB for economic losses of 1 billion yuan. However, the Guangdong Higher People's Court subsequently ruled that JDB's counterclaim did not meet legal requirements and was not accepted. At the trial, Wanglaoji's claim of 2.9 billion yuan became the focus of attention for all parties.
In fact, the reason this case attracted great attention from the industry is not unrelated to the high claim amount of 2.9 billion yuan. Now, the first-instance result has finally been reached, which is half of the 2.9 billion yuan compensation originally demanded.
However, JDB, which is currently facing management turmoil, a lawsuit from COFCO Packaging, and many other anxieties, now has to face 1.44 billion yuan in compensation. How to overcome this hurdle is worrying.
## **JDB's Statement on the Trademark Dispute Judgment**
Dear friends from all walks of life:
On July 25, 2018, we received the first-instance judgment from the Guangdong Higher People's Court regarding the trademark infringement dispute filed by Guangzhou Pharmaceutical Group against JDB. JDB disagrees with the first-instance judgment and has immediately appealed to the Supreme People's Court. The first-instance judgment will not take effect.
We firmly believe that during the period from May 2, 2010, to May 19, 2012, Guangzhou Pharmaceutical and JDB were in a cooperative relationship, fulfilling obligations and enjoying rights in accordance with the agreement, and JDB did not have any so-called infringement issues. Regarding the cooperative relationship between the two parties, the Supreme People's Court's judgment on the red can packaging case on August 16, 2017 (Case No.: [2015] Min San Zhong Zi No. 3) fully stated and recognized that the shared red can packaging judgment was based on the years of cooperation background, historical causes, and consumer recognition. JDB's use of the trademark was based on the agreement and it paid the usage fee, and during the use, Guangzhou Pharmaceutical also actively cooperated and recognized it. In 2010, Guangzhou Pharmaceutical issued multiple letters to cooperate with JDB in brand promotion and publicity during the Asian Games held in Guangzhou in November of that year. During this period, the cooperation between the two parties was smooth and pleasant. JDB made arduous efforts and huge investments in brand promotion, greatly enhancing the brand value. The Supreme People's Court's [2015] Min San Zhong Zi No. 3 judgment also recognized that during the cooperation period, JDB "made positive contributions to the accumulation of the Wanglaoji brand's goodwill."
As the pioneer of the Chinese herbal tea category and the leader of the herbal tea brand, JDB has launched a three-year listing plan. After a successful listing, JDB will become a public company and will be more capable of making the company stronger, maintaining the healthy development of the herbal tea category. JDB is also willing to work with peers to jointly strengthen the national brand and promote Chinese herbal tea culture to the world.
JDB (China) Beverage Co., Ltd.
July 25, 2018
Source: China Times, JDB official Weibo
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