Jiaduobao was sentenced to compensate Guangzhou Pharmaceutical Group 317 million yuan! Both parties respond to capital | Guangzhou Pharmaceutical Group | being awarded compensation

Release time:Apr 14, 2024 03:39 AM

Red Star Capital Bureau reported on July 10th that today, Jiaduobao announced that it has received the first instance judgment of the Guangdong Provincial High People's Court on the trademark dispute case between Guangzhou Pharmaceutical Group and Jiaduobao.

The first instance judgment determined that six Jiaduobao companies, including Jiaduobao Beverage Co., Ltd., Fujian Jiaduobao Beverage Co., Ltd., Hangzhou Jiaduobao Beverage Co., Ltd., and Wuhan Jiaduobao Beverage Co., Ltd., jointly infringed on the rights, and ordered the six Jiaduobao companies to compensate 317 million yuan.

Jia Duobao expressed regret over the verdict and will immediately appeal to the Supreme People's Court. This trial will not have any impact on Jiaduobao.

Baiyunshan also announced today that the controlling shareholder of our company, Guangzhou Pharmaceutical Group, has received the first instance "Civil Judgment" (Yue Min Chu No. 4) from the Guangdong High Court regarding the legal dispute over the "Wang Lao Ji" trademark. Baiyunshan stated that the retrial judgment in this case will not have any impact on the company's current or future profits.

Screenshot from Baiyunshan Announcement

Red Star Capital Bureau sent a letter and private message to Jiaduobao inquiring about the specific appeal time, reasons for choosing to appeal again, and whether they have confidence in winning the lawsuit. As of the time of publication, the other party has not responded yet. Red Star Capital Bureau consulted with Guangzhou Wanglaoji Health Industry Co., Ltd., the main body company of Hongcan Wanglaoji, a wholly-owned subsidiary of Baiyunshan, whether Guangzhou Pharmaceutical Group will also file another appeal this time. The other party stated that internal communication is needed first. As of the time of publication, there has been no relevant response.

Focus of disputes in the second instance

Jiaduobao was sentenced to compensate Guangzhou Pharmaceutical Group 317 million yuan! Both parties respond to capital | Guangzhou Pharmaceutical Group | being awarded compensation

Is there factual and legal basis for infringement and compensation judgments

It is understood that in 2014, Guangzhou Pharmaceutical Group initiated a trademark infringement lawsuit, and the Guangdong High Court made a first instance judgment in 2018.

According to the announcement made by Baiyunshan, a subsidiary of Guangzhou Pharmaceutical Group, in July 2018, the first instance civil judgment of the Guangdong High Court on the "Wang Laoji" trademark legal dispute case showed that Guangdong Jiaduobao Beverage and Food Co., Ltd., Zhejiang Jiaduobao Beverage Co., Ltd., Jiaduobao Beverage Co., Ltd., Fujian Jiaduobao Beverage Co., Ltd., Hangzhou Jiaduobao Beverage Co., Ltd., and Wuhan Jiaduobao Beverage Co., Ltd. were ordered to compensate Guangzhou Pharmaceutical Group for a total of RMB 1.441 billion in economic losses and reasonable rights protection costs.

Screenshot from Baiyunshan Announcement

Later, both Guangzhou Pharmaceutical Group and six Jiaduobao companies appealed against the first instance judgment.

In the second instance civil ruling released by the Supreme Court, the Supreme Court believes that the focus of controversy in the second instance stage is whether the conclusion of the first instance court that the six Jiaduobao companies have infringed on the trademark rights of Guangzhou Pharmaceutical Group's "Wanglaoji" and judged them to bear compensation liability has factual and legal basis.

According to the ruling, both parties confirm that six Jiaduobao companies used the "Wanglaoji" trademark on herbal tea products from May 2, 2010 to May 12, 2012.

The Supreme Court believes that the first instance court should first examine whether the accused infringement behavior was "without the permission of the trademark owner", and then determine whether Liujia Duobao Company should bear corresponding legal responsibilities based on this.

Regarding the question of whether it has not been approved by the trademark owner, Red Star Capital consulted Jia Duobao and Wang Laoji Health about the latest examination situation of Guangdong High Court. As of the time of publication, neither party has responded.

From 1.441 billion yuan to 317 million yuan

Jiaduobao's compensation amount has been further reduced due to judgment

It is understood that Guangzhou Pharmaceutical Group previously demanded compensation of 2.93 billion yuan from Jiaduobao. The compensation amount of 1.441 billion yuan in the 2018 first instance judgment is about half of the litigation compensation amount.

Red Star Capital Bureau consulted Wang Laoji's health, and the other party has not responded yet whether the reason why Guangzhou Pharmaceutical Group previously won the lawsuit but filed an appeal is related to the lower than expected compensation amount.

The Red Star Capital Bureau has noted that the confirmation of the compensation amount is related to the evidence stated in today's statement by Jiaduobao that there are significant deficiencies in both content and form.

According to the ruling, the Special Analysis Report previously provided by Guangzhou Pharmaceutical Group has significant deficiencies in both the content and form of evidence, and cannot be used as a basis for determining the facts of the case. The report stated that Liujia Duobao Company had a total net profit of 2.93 billion yuan from May 2, 2010 to May 19, 2012, and based on this, the compensation amount was determined.

The ruling stated that the Special Analysis Report made multiple reservations to the analysis results in the conclusion section, clearly indicating the lack of a large amount of basic financial data, and the lack of qualification certificates and signatures of the relevant personnel who produced the analysis report.

After a retrial by the Guangdong High Court, Jia Duobao's compensation amount was significantly reduced from 1.441 billion yuan to 317 million yuan. Regarding the reason for the continuous decrease in compensation amount, Red Star Capital consulted with Jiaduobao and Wang Laoji Health, but neither party responded.

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