Licensor Need Not Reimburse Licensee For Unauthorized Advertising Expenses In China

The manufacturer of REDBULL brand energy drinks in China, T.C. Pharmaceuticals Industries ("T.C. Pharma"), has successfully defeated an intellectual property claim that could have subjected it to one of the highest damages claim heard by a Chinese court. In RedBull Vitamin Drink Co., Ltd. v. T.C. Pharmaceuticals Industries, the plaintiff, RedBull Vitamin Drink Co. Ltd. of China ("RedBull China") sought an award of U.S. $5.3 billion in damages to reimburse it for advertising expenses incurred in connection with promoting licensed REDBULL brand energy drinks. T.C. Pharma argued that it had not authorized RedBull China's claimed advertising expenses because the trademark license agreement had expired, and therefore it was not liable for any reimbursement. The Beijing High Court ruled in favor of T.C. Pharma and did not award any damages to RedBull China.