Danone loses Wahaha trademark in China arbitration

SHANGHAI, Dec 10 (Reuters) - French food giant Danone (DANO.PA: Quote, Profile, Research, Stock Buzz) said on Monday that a Chinese arbitration office has requested it to terminate its trademark transfer agreement with Chinese partner Wahaha Group.

In a statement, Danone said China's Hangzhou Arbitration Commission had ruled against Danone in the case and it is "shocked" by the decision, which contradicts facts.

Danone also said it would make a statement later in a further response to the matter.

Danone and Wahaha have been exchanging accusations and lawsuits for months, with the French company accusing Wahaha of setting up illegal parallel operations outside their ventures that sell Wahaha-branded products.

Danone has asserted that it had paid Wahaha Group 50 million yuan ($6.6 million) as part of a deal that gave the joint ventures exclusive right to use the trademark, and that the transfer had been confirmed by the Hangzhou government. But on June 14, Wahaha filed an arbitration claim, seeking termination of the trademark transfer agreement signed with the joint venture in 1996. Wahaha said the venture never formally and legally transferred the trademark from Wahaha Group. (Reporting by Samuel Shen; Editing by Charlie Zhu)