A Shanghai court today sentenced a hotel and sauna club to pay 200,000 yuan (US$28,571) each in compensation to the Ritz-Carlton hotel and to stop using its trademarks.

Shanghai Huangpu Rits Club and Shanghai Jing'an Rits Business Hotel have infringed the trademark of the Portman Ritz-Carlton after using similar trademarks and competing in the same industry, the Shanghai No. 2 Intermediate People's Court ruled.

The two Rits, established in the city in 2004, are both owned by Xiamen-based Lijing Entertainment Company. The Lijing Company registered the trademark "Rits" in 2000, two years after Ritz-Carlton opened and registered in China, the court added.

The Portman Ritz-Carlton is considered one of the top hotels in Shanghai.

The Ritz Hotel Ltd accused the two Shanghai Rits companies in October and the court heard the trademark dispute on April 7 in a hearing that was broadcast live online, the first such practice in the city.

The Ritz-Carleton was seeking more than 300,000 yuan compensation from each company.

Shanghai's Rits club enjoyed a good reputation in the sauna and massage industry. It was selected as the best chain last year in Shanghai, previous reports said.

(Shanghai Daily April 21, 2008)