Lessons from the Front Line: Danone vs. Wahaha

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China Law Blog’s Steve Dickinson did an excellent article on the long-running Danone-Wahaha joint venture and trade mark case in the China Economic Review (and details can also be found at the China Law Blog. The headline lessons are below, but the whole article is well worth a read.

    • Do not use technical legal techniques to assert or gain control in a JV

    • Do not expect a 51% ownership interest in a JV to provide effective control

    • Do not proceed with a JV formed on a weak or uncertain legal basis

    • The foreign party must actively supervise or participate in the day-to-day management of the JV

Additional comment on the IP angle of the case is provided at China Hearsay by Stan Abrams.

No doubt there will be more on this case (which I have covered before: “Another MNC in Hot Water” ; “Wahaha(ha!)” ) to come. In the meantime, here is a quote (from Unilever China boss, Alan Brown, in “China CEO”) that I often repeat on the subject of joint ventures in China:

    “If you are working in a highly regulated industry, then JV partners are almost essential…If you are working in a highly deregulated industry, they can be a damn nuisance”.

I suspect Danone would agree!

One Response to “Lessons from the Front Line: Danone vs. Wahaha”

  1. Regional blogs » Blog Archive » Lessons from the Front Line: Danone vs. Wahaha Says:

    […] e”. I suspect Danone would agree! Оригинал сообщения от Administrator тут… This entry was posted on Wednesda […]

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