Legal fight over herbal tea packaging ends in stalemate

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The controversy between two of China’s biggest herbal tea brands come to a halt on Tuesday as the country’s Supreme People’s Court ruled that the two companies are entitled to using similar product packaging of a red wrapper printed with yellow characters.

The court said that given that Wanglaoji and JDB have striven for the right of use, the two companies can continue to use the red and yellow packaging as long as they do not do any damage to each other’s interests.

CNS Photo

The two manufacturers of herbal tea started a fight over the packaging in the 1990s when Guangzhou Pharmaceutical Company (GPC), the manufacturer of Wanglaoji, authorized JDB to produce a herbal tea beverage with the trademark “王老吉” and JDB launched a red and yellow wrapper design for its tinned, bottled and soft-packaged beverage.

GPC also sold a herbal tea drink which came in green packaging.

In 2005, GPC decided to withdraw its trademark as the authorization expired and applied a similar red and yellow packaging to its products, which triggered 2012's legal battle in the High People’s Court in Guangdong Province as JDB claimed that right to use the packaging belonged to them.

CNS Photo

During the trial, GPC had a different understanding about the packaging, asserting that both the trademark and the package are an integral part of a product which could affect consumers’ judgement, so both should be withdrawn.

The Guangdong court ruled in favor of GPC and required JDB to pay over 150 million yuan in compensation.

JDB later sued Wanglaoji in the state’s highest judicial organ for retaining the right of use and accused GPC of infringement on the right of use.

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The supreme court rebutted JDB’s assertion and made the ruling that the two brands should have mutual understanding based on the fact that both has spared no effort to maintain their reputation on the market and should make their brands stronger to develop better products for consumers.