China’s New Civil Procedure Law behind the Application for an Injunction of Guangzhou Pharmaceutical Company

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(By Albert Chen) Guangzhou Pharmaceutical Company’s lawsuit (GPC) against Jia Duo Bao (JDB) for false advertising was heard in January of this year at the Guangzhou Intermediate People’s Court. In addition to the arguments held by each party regarding the false advertising, they also disputed whether an injunction could be issued as applied to GPC. Ultimately, the Guangzhou Intermediate People’s Court approved the injunction, basing its decision on findings that  JDB had exploited GPC through false advertising, thereby confusing and misleading consumers. The Court  then prohibited JDB from making advertisements with claims that GPC’s vitamin drink “Wang Lao Ji” had changed its name to JDB, or any other similar slogans indicating that somehow GPC’s Wang Lao Ji product was the same as JDB’s as the result of a name change.

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The Court Ultimately Supported Guangzhou Pharmaceutical Holding Company’s Application for an Injunction

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(BY Albert Chen  ) Guangzhou Pharmaceutical Holding Company (“GPHC”) is the holder of the王老吉 (the “Wang Lao Ji”) trademark in mainland China. In 2000, it licensed Hongdao Group, a Hong Kong admitted company, to use the trademark. After Hongdao Group used the trademark and caused it to develop a definite business reputation, however, a dispute broke out between the two parties over the right to use the Wang Lao Ji trademark.

In the first round of the fighting between the parties, GPHC used arbitration with CIETAC to cancel the supplementary agreements signed between two parties in 2002 and 2003 based upon the fact that the agreements were executed under commercial bribery. This website has discussed the implementation problems arising in that case. After that, the subsidiary of Hongdao Group that had sold Wang Lao Ji, Jia Duo Bao (“JDB”) began to sell its herbal tea under the brand name 加多宝(the “JDB”) Additionally, JDB used disputed slogans, such as “Wang Lao Ji now calls itself JDB,” “China’s top selling red can herbal tea now call itself JDB.” Claiming that such slogans constituted false advertising or unfair competition GPHC filed for an injunction with the Guangzhou Intermediate People’s Court and demanded an immediate halt to such advertisements.

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Will the Wang Lao Ji Brand Holder’s Litigation Injunction Application Against Jia Duo Bao Be Approved?

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(By Albert Chen) The hearing in the false advertising dispute between Guangzhou Pharmaceutical Holding Company (“GPHC”) (SSE: 600332) and Jia Duo Bao (“JDB”) was held in January of 2013 in the Guangzhou Intermediate People’s Court. In addition to the arguments over false advertising, the application for a litigation injunction has been hotly debated. Today, we would like to introduce you to the injunction, which is called “preliminary execution” in China’s Civil Procedure Law.

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Will JDB Revoke Wang Lao Ji Trademark Arbitration Award through Litigation?

By You Yunting

In recent, a spat over the established brand Wang Lao Ji, also known as Wong Lo Kat, which is the most valuable herbal tea trademark in China, has occurred. The biggest distributor of the drink in China, JDB group, claimed that it has filed the application to Beijing No. 1 Peoples’ Bank to revoke the adjudication made by the China International Economic and Trade Committee (CIETAC) on the dispute.

The basic facts of the case in the reports: Guangzhou Pharmaceutical Group Co., Ltd. (the “Guangzhou Pharmaceutical’, SZSE: 600332) is the registered owner of the Wang Lao Ji trademark, who signed a trademark license agreement with Hung To Group Co., Ltd. (the “Hung To”, the parent company to JDB), by which Hung To gets the loan of the trademark of 10 years.

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