Row over famous red can takes a tea break

The legal wrangle over packaging between two leading Chinese herbal tea makers, Hong Kong-based JDB Group and Guangzhou Pharmaceutical Holdings, has come to a halt, temporarily, with 150 million yuan ($24 million) in compensation granted to the Guangzhou company.

Some two-and-a-half years after the two companies filed lawsuits against each other, the Guangdong Higher People's Court ruled on Dec 19 that JDB (China) Drink Co, a subsidiary of the JDB Group, must compensate Guangzhou Pharmaceutical 150 million yuan for its losses and 260,000 yuan in legal costs.

The court also ordered JDB to stop using similar packaging and decoration - a well-known red can - to Wong Lo Kat, the herbal tea brand of Guangzhou Pharmaceutical.