A LOCAL company that sold cashmere products near the Bund has been ordered to pay 700,000 yuan (US$101,816) in compensation to a Shandong company.

In a trademark-infringement lawsuit, the Shanghai Intellectual Property Court said Shanghai Rongshang Investment Management Co was found cashmere products in its store at Waldorf Astoria Shanghai and at another boutique store on the Bund.

The products were branded Ruyi in Chinese and Ruyee in English. But Shandong Ruyi Group had registered Ruyi for its cashmere products, which had gained some popularity, the court said.

Besides, the pronunciation of both Ruyi and Ruyee was the same, causing a lot of misunderstanding among buyers.

The court therefore ordered Rongshang to stop selling the products and pay a compensation of up to 700,000 yuan to Shandong Ruyi.