Wahaha Wins Trademark Ownership Lawsuit against Danone

The “Wahaha” trademark ownership belongs to Wahaha Group, according to the final judgment of Hangzhou Intermediate People's Court, released Wahaha Group Co. Ltd.

 In 1996, France's Groupe Danone SA,
Hong Kong investment bank Peregrine and Hangzhou Wahaha Group Co.,
Ltd. paired up to sign an agreement to form 5 joint venture
companies. Danone controlled 41% of the shares, Peregrine held 10%.
After the Asian financial crisis, Peregrine went bankrupt and Danone
bought out its 10% share. As Danone accounted for a 51% stake of the
joint ventures, it gained the controlling right. At the beginning
when the joint ventures were founded, Wahaha Group also set up 5
non-joint ventures that produced beverage products other than bottled
water, milk and mixed congee.

In April 2007, Danone SG
requested to buy out 51% share of Wahaha non-joint ventures for an
under priced payment of 4 billion. The proposal was firmly rejection
by Wahaha Group. Although many third parties tried to help resolve
the conflict, the differences between the sides were too great and
the negotiations made no progress. After the negotiations
failed,
Danone filed more than 30 lawsuits under jurisdictions in
several countries such as Italy, France, the United States and China,
suing Wahaha Group with "breach of contract" and "illegal
use of the Wahaha trademark." However, Danone failed in all
lawsuits that have issued court rulings.