Executive Summary
Key insights from the latest developments in the Wanglaoji and Jiaduobao trademark conflict:
- Jiaduobao claims legal ownership of overseas ‘Wanglaoji’ trademarks in 60 countries, while Wanglaoji disputes this and has initiated challenges in 21 nations.
- Historical legal battles in China have set precedents, with recent overseas cases in Canada and the EU adding layers to this complex dispute.
- Brand licensing and management issues pose significant risks, as seen in recent scandals involving unauthorized products and fraudulent招商 activities.
- International investors must monitor jurisdictional differences in trademark laws, which could affect Chinese equity valuations and global expansion plans.
- The overseas trademark dispute underscores the importance of robust intellectual property strategies for companies entering foreign markets.
A New Chapter in a Decade-Long Rivalry
The simmering tensions between Wanglaoji and Jiaduobao erupted once again in early October, as both companies issued starkly contrasting statements over the ownership of overseas trademarks. Jiaduobao Group asserted its rights through an official Weibo post, while Wanglaoji responded with a terse, viral retort that captured public attention. This latest skirmish is part of a broader overseas trademark dispute that has spanned over ten years, involving multiple jurisdictions and billions in potential market value. For investors in Chinese equities, understanding this conflict is crucial, as it reflects larger trends in intellectual property management and global brand strategy.
The overseas trademark dispute has escalated beyond mere legal wrangling, influencing stock performance and investor confidence in the beverage sector. Wanglaoji, under Guangzhou Baiyunshan Pharmaceutical Group, and Jiaduobao, controlled by Hongdao Group, have both leveraged court victories in different regions to bolster their claims. As Chinese brands accelerate their international expansion, such disputes highlight the pitfalls of inadequate trademark protection and the need for proactive legal frameworks. This case serves as a cautionary tale for other companies eyeing global markets.
Recent Claims and Counterclaims
On October 10, Jiaduobao Group released a detailed declaration via its official Weibo account, stating it had legally acquired the overseas ‘Wanglaoji’ trademark in the early 2000s and secured registrations in 60 key countries and regions. The company emphasized its long-standing rights, tracing back to agreements with descendants of the Wanglaoji lineage in the 1990s for the herbal tea formula and trademark usage. In response, Wanglaoji used its WeChat public account ‘Wanglaoji Walovi’ to issue a blunt twelve-character reply: ‘If sick, go to hospital; if有事, go to court. Thanks!’ This exchange underscores the deepening animosity and the strategic use of social media in corporate communications.
Wanglaoji’s parent company, Guangzhou Baiyunshan Pharmaceutical Group, had earlier, on September 30, accused Jiaduobao of maliciously registering trademarks through an offshore affiliate, Wanjie Limited. They claimed this was aimed at disrupting Wanglaoji’s legitimate overseas business operations. Jiaduobao, however, cited favorable rulings from the Canadian Federal Court and the European Union General Court in 2024, which upheld its trademark registrations. These conflicting narratives create a ‘trademark罗生门,’ where each side presents compelling evidence, leaving investors to navigate a murky legal landscape. The overseas trademark dispute thus demands careful analysis of jurisdictional outcomes and their financial implications.
Historical Context of the Trademark War
The roots of this conflict date back to 1995, when Hongdao Group, the controlling entity behind Jiaduobao, entered into a partnership with Guangzhou Pharmaceutical Group (广药集团) to obtain exclusive rights to the ‘Wanglaoji’ brand for canned beverages. Under Jiaduobao’s management, the brand flourished, evolving from a regional specialty into a nationally recognized herbal tea drink. However, as the collaboration neared its end, disputes over trademark renewal and ownership ignited a series of legal battles that have persisted for over a decade. This history is essential for grasping the current overseas trademark dispute, as it sets the stage for ongoing hostilities and market volatility.
Since the partnership dissolved in 2011, Wanglaoji and Jiaduobao have engaged in numerous lawsuits in China, covering trademarks, packaging, and advertising slogans, with claimed damages totaling billions of yuan. A landmark case in 2014 saw Guangzhou Pharmaceutical Group sue for trademark infringement, leading to a 2018 ruling by the Guangdong High Court ordering Jiaduobao to pay 1.44 billion yuan in compensation. Both parties appealed, and in 2019, the Supreme People’s Court overturned the decision, remanding it for retrial. In 2023, the Guangdong High Court issued a new judgment, finding six Jiaduobao companies liable and awarding 317 million yuan in damages, which Jiaduobao has vowed to appeal. These domestic rulings illustrate the high stakes and legal complexity that now extend globally.
From Domestic to Global Legal Fights
The transition from domestic to international courts marks a significant evolution in this overseas trademark dispute. Jiaduobao points to successes in jurisdictions like Canada and the EU, where courts have affirmed its trademark registrations. For instance, a June 7, 2024, decision by the Canadian Federal Court validated eight ‘Wanglaoji’ trademarks held by Wanjie Limited, Jiaduobao’s affiliate. Similarly, the EU General Court maintained these registrations, providing Jiaduobao with a legal foothold in key markets. Conversely, Wanglaoji has launched challenges in 21 countries, including Australia, Brazil, South Korea, Japan, Germany, France, and New Zealand, and has already secured favorable outcomes in 10 nations, where authorities revoked Jiaduobao’s trademarks.
This global legal maneuvering highlights the divergent strategies employed by both companies. Jiaduobao focuses on registrations under ‘WANG LAO JI’ and ‘WONG LO KAT’ for English markets, while Wanglaoji uses ‘WALOVI’ for its international branding, though both retain the Chinese ‘王老吉’ characters. As of September 2025, Wanglaoji reported completing trademark registrations for ‘王老吉’ and ‘WALOVI’ in over 100 countries, signaling its commitment to worldwide expansion. The overseas trademark dispute thus serves as a real-time case study in how Chinese firms navigate intellectual property laws across borders, with direct consequences for investment portfolios focused on consumer goods and equities.
Global Implications and Jurisdictional Challenges
The overseas trademark dispute between Wanglaoji and Jiaduobao underscores the complexities of international intellectual property governance. Legal experts note that variations in trademark systems across countries can lead to inconsistent rulings, making it easier for companies to exploit gaps. For example, in common law jurisdictions like Canada, prior use and registration play a critical role, whereas civil law systems in the EU may emphasize first-to-file principles. These differences have allowed both sides to claim victories in select regions, complicating the resolution of the overall conflict. Investors must consider how such jurisdictional nuances could affect other Chinese brands seeking global footprints, potentially influencing stock performance in sectors like beverages, technology, and pharmaceuticals.
Moreover, the dispute has broader economic implications, as it reflects China’s push for brand globalization under initiatives like the Belt and Road. A report from the World Intellectual Property Organization indicates that Chinese trademark filings abroad have surged by over 15% annually in recent years, highlighting the growing importance of overseas protection. However, cases like this reveal vulnerabilities: without harmonized legal standards, companies face increased litigation costs and market uncertainty. For institutional investors, this means conducting thorough due diligence on intellectual property portfolios when evaluating Chinese equities, especially those with significant international exposure. The overseas trademark dispute here acts as a bellwether for similar conflicts that could arise as more firms expand overseas.
Market Impact and Investor Strategies
The ongoing overseas trademark dispute has tangible effects on market dynamics, influencing shareholder value and competitive positioning. Historical data shows that legal wins for either side often correlate with short-term stock fluctuations for their parent companies. For instance, Guangzhou Baiyunshan Pharmaceutical Group’s shares have experienced volatility following key court decisions, underscoring the sensitivity of equities to intellectual property outcomes. To mitigate risks, investors should monitor legal developments in high-stakes regions and diversify holdings across sectors less prone to trademark battles. Additionally, engaging with companies that demonstrate strong IP management—such as those with clear global registration strategies and proactive enforcement—can enhance portfolio resilience.
Practical steps for investors include reviewing annual reports for disclosures on trademark litigation and consulting legal experts on jurisdictional risks. For example, accessing databases like the EU Intellectual Property Office or China’s National Intellectual Property Administration can provide insights into pending cases. As the overseas trademark dispute evolves, it may also create opportunities in ancillary services, such as legal tech and IP insurance, which are emerging growth areas in Asian markets. By staying informed, investors can turn potential liabilities into advantages, aligning with trends in sustainable and ethically managed investments.
Brand Management and Licensing Risks
Beyond the legal fray, the overseas trademark dispute has exposed deeper issues in brand management and licensing for Wanglaoji. In recent years, the company has faced negative publicity due to widespread brand authorization practices. For instance, in April 2025, Guangdong Tongmei Biotechnology Co., Ltd. was fined 641,000 yuan for violations related to a cosmetics product branded under Wanglaoji’s parent company, Guangzhou Baiyunshan. The product, a ginseng anti-wrinkle essence oil, had unauthorized formula changes and misuse of cosmetic ingredients, leading to regulatory penalties. This incident highlights the risks of over-reliance on licensing models, which can dilute brand integrity and erode consumer trust, ultimately affecting market share and investor returns.
Further complicating matters, Wanglaoji has been embroiled in ‘brand authorization chaos,’ where unauthorized entities impersonated official ‘Wanglaoji operation centers’ to lure investors with false promises of high returns and celebrity endorsements. In 2022, Guangzhou Pharmaceutical Group issued a public disclaimer, denying any affiliation with these companies and reporting them to authorities. Such schemes not only harm the brand’s reputation but also pose financial risks to unwary investors, emphasizing the need for rigorous due diligence. The overseas trademark dispute thus intertwines with domestic governance challenges, suggesting that companies must strengthen internal controls and transparency to safeguard their global ambitions.
Lessons for Corporate Governance
The recurring problems in Wanglaoji’s licensing operations offer valuable lessons for corporate executives and investors alike. Experts recommend implementing centralized trademark management, as seen with Guangzhou Chuangying Guangyao Baiyunshan Intellectual Property Co., Ltd., the subsidiary handling Wanglaoji’s IP assets. This approach can reduce the incidence of unauthorized use and improve compliance across product lines. Additionally, companies should conduct regular audits of licensed partners and leverage technology for real-time monitoring of brand misuse. For investors, assessing a firm’s IP governance—such as its history of litigation and compliance records—can provide early warnings of potential disputes, including those in overseas markets like the current trademark clash.
In the context of the overseas trademark dispute, these governance issues amplify the stakes, as weak domestic management can undermine international legal positions. For example, past incidents of counterfeit products, such as the ‘Wanglao Shijia’凉茶 that mimicked Wanglaoji’s packaging, have been used by rivals like Jiaduobao to question brand authenticity. By addressing these vulnerabilities, companies can not only resolve current conflicts but also build a foundation for sustainable global growth. Investors should prioritize firms with demonstrated IP resilience, as they are better positioned to navigate the complexities of international expansion and deliver long-term value.
Looking Ahead: Resolving the Trademark Standoff
As Wanglaoji and Jiaduobao continue their legal battles across multiple continents, the path to resolution remains uncertain. Both companies have invested heavily in their global trademark strategies, and neither shows signs of backing down. Legal experts predict that the dispute could persist for years, with outcomes varying by jurisdiction and influencing broader intellectual property norms for Chinese companies abroad. For stakeholders, this means preparing for prolonged volatility and seizing opportunities to advocate for standardized international trademark protocols. The overseas trademark dispute here is not just a bilateral conflict but a microcosm of the challenges in globalizing Chinese brands, requiring adaptive strategies from all parties involved.
In the meantime, investors and corporate leaders should focus on proactive measures, such as engaging in industry dialogues on IP reform and supporting cross-border legal collaborations. By learning from this overseas trademark dispute, companies can develop more robust expansion plans that prioritize early trademark registrations and local legal expertise. For those monitoring Chinese equities, staying updated on court rulings and regulatory changes will be key to making informed decisions. Ultimately, this conflict underscores the critical role of intellectual property in modern business—a lesson that extends far beyond the herbal tea market to all sectors navigating global competition.
Take action now by consulting with IP specialists and reviewing your investment portfolios for exposure to similar disputes. Subscribe to updates from authoritative sources like the World Intellectual Property Organization or financial news platforms to stay ahead of developments in this ongoing saga.