htmlOn December 23, the official website of China Red Bull stated that it had submitted to the judicial department the original "Agreement" proof that China Red Bull exclusively produces and sells Red Bull beverages in the Chinese market.
This is another decisive document in the development history of China Red Bull after the original "Tripartite Agreement on the Transfer of the Registered Trademark of Jinhua "Bulfighting"".
For several years, Thailand Tensile has filed several lawsuits against China Red Bull over the legality of the agreement. Now, the original 50-year agreement is in place, and this evidence may encourage judicial authorities to more fully understand the true situation of all parties in China-Thailand corporate cooperation in the 1990s. This century-long battle of the century will also usher in a new turning point.
01 "50-year agreement" background: Four parties trust and cooperation, save Red Bull development
50 "Agreement" was signed on November 10, 1995, and was signed by Huabin Group Chairman Yan Bin on behalf of China Red Bull, China Food Industry Corporation, Shenzhen Zhonghao (Group) Co., Ltd., and Thailand Tensi.
The Agreement has 9 articles in total, and the first article stipulates that "only 'China Red Bull' has the right to produce and sell Red Bull beverages in China", "'Thai Tennis' shall not produce or contract to other companies to produce or sell similar products of Red Bull beverages in China." Article 7 stipulates that "this agreement is valid for fifty years and will take effect from the date of signing." The signing party for the Chinese Red Bull is Yan Bin, and the signing party for the Thai Tiansi is Pavana, the wife of Thai Tiansi and Xu Shubiao, the mother of Xu Xinxiong, the current head of the group.
When Red Bull entered the Chinese market, he regarded Yan Bin, who cooperated with China-Thailand enterprises, as a "life-saving" partner. In 1993, when Xu Shubiao, the founder of Thailand Tennis, planned to exclusively introduce Red Bull into the Chinese market, he could not obtain the production license documents or register a Chinese trademark. Subsequently, with Yan Bin's efforts, the "50-year cooperation" agreement was reached, and Yan Bin independently operated the Red Bull brand. The 50-year agreement protects the interests of the joint venture and all parties, and Thailand Tensile also has a huge income under the protection of the agreement.
On the other hand, the "50-year" agreement also has a special historical background. In the 1990s, the business term of Sino-foreign joint ventures could only be recorded as 30 years when applying for industrial and commercial registration. Finally, the Shenzhen Industrial and Commercial Department approved the registration time of China Red Bull for 20 years. All parties believe that when the market prospects are unclear and the resources both parties invest huge investments, the 20-year cooperation period will lead to the short investment income period and even the risk of state-owned assets loss. Therefore, the "Agreement" with a validity period of 50 years was finally signed.
02 The key to the original "Agreement": expose the truth and restore the essence of cooperation
Since 2014, Thailand's Tiansi has cut off the supply of flavors and fragrances, requiring China Red Bull to stop using the Red Bull trademark, and then initiated more than ten lawsuits, which not only prevented China Red Bull from extending the operating period of in accordance with the law, but also used the trademark to authorize to launch and sell products similar to China Red Bull.
Confrontation court, the key difference between Thailand Tensi and Huabin Group lies in the determination of the Agreement. Thailand Tensile insists on the "20-year operating period" of industrial and commercial registration. China Red Bull believes that the 50-year agreement was the prerequisite for Sino-Thai enterprises to start cooperation in the 1990s, and also laid a solid foundation for the creation and development of the "Red Bull" brand in the Chinese market. The other two state-owned enterprises also issued corresponding confirmation letters.
The original 50-year Agreement will be made public, and the legitimacy of China's Red Bull market operation and safeguarding its own rights and interests will be explained from the perspectives of "reasonability" and "legality".
One of them is the rationality of China Red Bull’s “exclusive operation” and the use of the Red Bull trademark. The original 50-year Agreement conveys the true expression of intentions of participants in the early stages of cooperation. That is, take development as the core, and mutual trust and cooperation.
The second is the legality of the 50-year Agreement.In fact, before the original copy of the agreement was found, China Red Bull conducted a judicial appraisal of the copy and handwriting of the agreement, and obtained confirmation letters from multiple parties and witness testimony from the witnesses at that time. However, because it was a copy, Thai Tensi and the attorney refused to admit it in court. Now that both Chinese and English have been found, requiring judicial appraisal is a delaying tactic and delaying strategy.
In fact, it is not a technical issue to sign the "Agreement" in 1995. As the party involved at that time, the director of Thai Tennis, Xu Shubiao's wife and Xu Xinxiong's mother would not remember whether to sign it. Previously, China Red Bull failed to obtain recognition from Thailand Tensi and its attorneys with a copy of the 50-year Agreement, the confirmation letter of the parties, and the testimony of the parties. Now, the original Chinese and English documents of the 50-year Agreement have been disclosed one after another, and its effectiveness will ultimately improve its evidence link and restore the truth.
