Changyu Wine Settles 10-Year Legal Dispute

Yantai Changyu Pioneer Wine (000869) ended its 10-year long legal dispute with six companies over the Cabernet trademark, with Changyu Wine agreeing to share the Carbernet trademark with the six companies at no charge and without time limit, reports ccstock.cn, citing a company filing.

The dispute was over whether Changyu Wine could monopolize the Cabernet trademark as it is a common ingredient used to make wine and is a common industry term.

Changyu Wine will authorize Cofco Wines and Spirits, Cofco Great Wall (Yantai) Wine, Cofco China Great Wall Wine, Cofco Great Wall Wine, Sino-French Joint-Venture Dynasty Winery and Shandong Weilong Wine to use the Cabernet trademark.

Wine producers other than the six aforementioned companies could no longer use the Cabernet trademark.

Changyu Wine had used the Cabernet trademark to produce and sell wine since 1997. Revenue generated by sales of Cabernet accounted for one third of total sales revenue in 2009.