The Wahaha Group, embroiled with French partner Danone, is
planning to ask for arbitration to resolve the trademark dispute,
Wahaha's Chairman Zong Qinghou said Wednesday.
The Hangzhou Arbitration Committee will be asked to rule on
whether Wahaha may still use the famous brand name?on the
grounds?its agreement with Danone was never approved by
China's trademark authority, said Zong at his first press
conference since the feud broke out.
In protest, Zong has resigned from his post of chairman of all
39 joint ventures with Danone but has remained as chairman of the
Hangzhou-based Wahaha Group.
The base of Zong's claims is that Danone "trapped" the
inexperienced Wahaha into signing a joint venture agreement that
restricted them from using their own brand name outside the joint
ventures. However, Zong provided no further details. ?
Danone, which owns 51 percent of the joint ventures, has
responded by accusing Wahaha of violating the 1996 agreement by
illegally setting up companies outside their joint ventures. Danone
is demanding a 51-percent stake in the non-joint venture
companies.
Emmanuel Faber, who was named interim chairman of the joint
ventures, stated that Danone is pushing for an amicable resolution
and hopes to hold a board meeting?with Chinese directors in 10
days despite filing a lawsuit against Wahaha in the United
States.
Zong expressed his feeling that Faber would do a good job in his
new post but needed to stand the test of time, adding that the
title itself did not bestow authority and public trust and that it
remained to be seen if Faber would be accepted by staff.
Employees of the joint ventures reacted negatively to Faber's
appointment and have even staged protests, said a Wahaha
spokesman.
(Xinhua News Agency June 14, 2007)