Popular Chinese herbal tea maker sues rival for false advertising again

A Beijing court began a trial between popular Chinese herbal tea maker Wanglaoji and rival Jiaduobao over the latter's alleged false advertising on Thursday.

Guangzhou Wanglaoji Pharmaceutical Co., Ltd accused Jiaduobao (China) Drink Co., Ltd of false advertising after Jiaduobao released slogans purporting their brand as the leading drink brand in China for seven consecutive years.

The trial was held at Beijing No. 3 Intermediate People's Court.

Wanglaoji said the advertising infringed on its fame and asked for Jiaduobao to pay 20 million yuan (3.25 million US dollars) over economic losses and a fee of 1 million yuan.

Jiaduobao, a Hong Kong-based beverage manufacturer, had been using the Wanglaoji brand since 1995, when it leased the brand from Guangzhou Pharmaceutical Holdings Limited (GPH). However, the company was only authorized to use the brand until 2010, and had the lease contract extended by bribing administrative staff of GPH.

The case went to arbitration in April 2011, with the China International Economics and Trade Arbitration Commission ruling in May 2012 that the brand rights rest with GPH.

Jiaduobao has since then produced a red tin herbal tea branded with the "Jiaduobao" name.

The two drink producers had been involved in two similar lawsuit cases previously.

In August, a court in Chongqing Municipality ordered Jiaduobao to pay 800,000 yuan to Wanglaoji over false advertising.

Last December, a court in Guangdong Province ruled that Jiaduobao must pay 10.81 million yuan to GPH and stop using false slogans.