Century-Old Trademark Dispute Nears Resolution: Beijing Tong Ren Tang to Acquire 60% Stake in Tianjin Counterpart

Deep News11-16

The prolonged trademark dispute between two century-old Chinese pharmaceutical brands may finally reach a settlement. According to China's State Administration for Market Regulation, Beijing Tong Ren Tang Group has entered the acceptance phase for acquiring a 60% stake in Tianjin Tong Ren Tang Group, which would grant Beijing Tong Ren Tang sole control over its Tianjin namesake.

The simplified merger filing reveals that post-transaction, Tianjin Tong Ren Tang's ultimate controlling parties will shift from private shareholders Zhang Yansen and Gao Guiqin to state-owned Beijing Capital Operation and Management Co. and China Cinda Asset Management.

This development follows years of legal battles over the "Tong Ren Tang" brand. In 2021, when Tianjin Tong Ren Tang attempted a ChiNext IPO, Beijing Tong Ren Tang Group filed a lawsuit demanding the Tianjin firm cease using the shared brand name and sought 50 million yuan in compensation. The Beijing-listed Beijing Tong Ren Tang (600085.SH) confirmed the acquisition in December 2022.

The rivalry traces back to their shared Qing Dynasty origins. While Beijing Tong Ren Tang dates to 1669, Tianjin Tong Ren Tang evolved from a 19th-century Beijing franchise operated by the Zhang family. Despite their historical connection, the companies maintained separate ownership structures until now.

Notably, their product portfolios show limited overlap. Beijing Tong Ren Tang dominates with premium products like Angong Niuhuang Wan, while Tianjin Tong Ren Tang specializes in niche medications for kidney diseases and vascular conditions, which accounted for over 90% of its gross profit from 2020-2022.

The acquisition includes a five-year commitment to resolve remaining competition issues. Regulatory approval appears imminent, potentially concluding one of China's most storied corporate brand disputes. Neither company responded to requests for comment regarding the transaction's progress.

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