GPH lawsuit against JDB

Guangzhou Pharmaceutical Holdings (GPH) is suing Jiaduobao Group (JDB) for trademark infringement and the case has been accepted by the Guangdong High People's Court, GPH's subsidiary Guangzhou Baiyunshan Pharmaceutical Holdings Co said in a filing to the Shanghai Stock Exchange Thursday.

GPH, the owner of herbal tea brand Wong Lo Kat, had authorized JDB to use the brand until May 2010. JDB then continued using the brand after 2010, but this resulted in a dispute with GPH.

GPH is now demanding JDB pay 1 billion yuan ($160 million) as compensation for continuing to use the brand from May 2010 to May 2012, according to the filing.

GPH signed two supplemental agreements with JDB in 2002 and 2003, which extended JDB's brand usage to May 2020, but after the two companies' dispute, the China International Economic and Trade Arbitration Commission ruled on May 9, 2012 the two supplemental agreements were invalid.