7 Jan - Groupe Danone and Hangzhou Wahaha Group of China began the latest round of their legal battle over who owns the US$2.4 billion Wahaha trademark as a hearing began in the Swedish capital of Stockholm.
The arbitration arm of the Stockholm Chamber of Commerce will adjudge whether the French-based Danone or its former Chinese partner owns the rights to the lucrative trademark used on fruit juices, teas and bottled water.
It is estimated the hearing could take up to two weeks to complete. The outcome delivered by the Swedish Arbitration Institute will not be legally binding but, said one expert, “will put the parties toward resolving the situation themselves in a commercial and reasonable manner”.
Danone has been involved in some 30 lawsuits in seven countries against Wahaha and its billionaire proprietor Zong Qinghou. It has accused Wahaha of a breach of contract by setting up separate firms selling Wahaha brands in direct competition with the joint venture.
It is believed the two companies hold a combined share of 16% of China’s non-alcoholic beverage market.
In December, 2007, Chinese authorities awarded control of Wahaha’s bottled water division to Zong and refused Danone the right of appeal against the decision.
Danone is seeking US$100 million damages plus US$25 million for each month since filing its compensation claim in Los Angeles in August 2007 for lost income.