Beverages News
- Wahaha to file arbitration over disputed contract with Danone
Date: 14-Jun-2007 Sources: (Xinhua Online)
HAGNZHOU, June 13 (Xinhua) -- China's drink giant Wahaha Group plans to apply for arbitration over the trademark dispute with its French partner Danone, Wahaha's Chairman Zong Qinghou said here Wednesday.
Wahaha will apply for arbitration with the Hangzhou Arbitration Committee seeking the right to use the famous brand name on the grounds that its agreement with Danone was never approved by China's trademark authority, said Zong at his first press conference since the feud broke out.
Zong has resigned from his post of chairman of the 39 joint ventures with Danone but he remains chairman of Hangzhou-based Wahaha Group.
Danone 'trapped' inexperienced Wahaha into signing the joint venture agreement which included articles restricting the use of the brand outside their joint businesses, Zong claimed.
He declined to offer any details.
Danone, which owns 51 percent the joint ventures, has accused Wahaha of illegally setting up companies outside their joint ventures which violates the 1996 agreement between the two parties. Danone is demanding a 51-percent stake in the non-joint venture companies.
Emmanuel Faber, who was named interim chairman of the joint ventures, has said that Danone hopes to reach an amicable resolution with government support and hold a board meeting with Chinese directors in 10 days, despite filing a lawsuit against Wahaha in the United States.
Faber will do a good job in his new post but 'requires the test of time,' said Zong at the press conference.
'A title doesn't necessarily bestow authority and public trust. Faber must be accepted by the employees,' Zong said.
Employees of the joint ventures have been in a hostile mood since learning of the appointment of Faber and have even staged protests, according to a spokesman of Wahaha.
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