A COURT in China has ordered three domestic shoemakers to pay more than 10 million yuan (US$1.5 million) to New Balance in damages for infringing the U.S. sportswear company’s signature slanting logo.

The amount of compensation, though small by international standards, is one of the highest to be awarded to foreign companies in trademark disputes in China, according to lawyers.

The ruling follows a speech by President Xi Jinping last month in which he vowed to punish intellectual property (IP) infringers. U.S. President Donald Trump recently authorized an inquiry into China’s IP practices.

An intermediate court in eastern China industrial town Suzhou said in its ruling last week that three defendants — including an individual who registered a company in Colorado as New Bai Lun — should stop infringing the American firm’s iconic trademark and their deceiving promotion of products.

“Although this sort of decision is still rare, it sends a strong and powerful message that should make it easier for foreign brands doing business here,” said Carol Wang, a lawyer at Lusheng Law Firm, which represented New Balance.

The court ruling document first appeared on social media Tuesday and was later confirmed by the law firm.

“The winning of this case has given us confidence to continue our proactive brand protection strategy in China,” said Angela Shi, brand protection manager of New Balance.

The three Chinese defendants — Zheng Chaozhong, Xin Ping Heng Sporting Goods Ltd. and Bo Si Da Ke Trading Ltd. - could not be reached for comment.

(SD-Agencies)