(Yicai Global) Aug. 16 -- A five-year dispute between two Chinese herbal tea brands, Jia Duo Bao (JDB) and Wong Lo Kat (or Wanglaoji in pinyin), over a red can packaging design has come to an end, with China's supreme court's final judgment ordering them to share the design.
The first chamber of the court ruled on two product design infringement cases filed by Guangdong Jiaduobao Drink & Food Co. against Guangdong Wanglaoji Pharmaceutical Co. and its parent Guangzhou Pharmaceutical Holdings Ltd., China Central Television reported.
Guangzhou Pharmaceutical and Guangdong Jiaduobao Drink & Food have both made important contributions to the formation of rights associated with the red can packaging design, so both companies should share it without infringing upon each other's legitimate interests, the court concluded.
The long-standing legal battle started after the pharmaceutical group, which had previously used green cans to package its products, filed for the Wong Lo Kat trademark and began using red cans on June 3, 2012. Its new packaging design is very similar to that of JDB's herbal tea.
The companies filed packaging design right infringement suits against one another on July 6, 2012. Each claimed to be the sole owner of the red can design.
The Guangdong Higher People's Court, the court with original jurisdiction, had ruled that Guangzhou Pharmaceutical Holdings Group was the owner of the packaging design, and the production and sale of JDB herbal tea constituted an infringement on its design rights. It ordered JDB to stop the tort, publish a clarifying announcement and pay Guangzhou Pharmaceutical Holdings USD22.1 million (CNY150 million) in compensation and another CNY260,000 to cover legal expenses. JDB then filed an appeal with the supreme court.