Japan's Honda Motor Co has brought legal action against two Chongqing-based motorcycle companies alleged to have infringed on its trademark.

The first hearing was held yesterday at the Beijing No 2 Intermediate People's Court with one of the accused, the Chongqing Lifan Motor Factory, not being present.

The other defendant was the Chongqing Lifan Industrial Group and the two companies are independent of each other, according to sources.

No decision was handed down at the close of proceedings yesterday and it is not known when a ruling will be made.

Honda is asking for compensation from the two producers and a motor retailer to the tune of more than 25 million yuan (US$3 million) for alleged economic losses caused by trademark violations.

The plaintiff claims that motors produced by the two companies carry the trademark "Hongda," which is only slightly different to "Honda" and is easily mistaken for the more famous brand.

Noting "Lifan" is the group's trademark, Pang Zhengzhong, the lawyer representing the Chongqing Lifan Industrial Group, claimed: "We have never produced motors with the Hongda symbol, as accused.

"Furthermore, the motor used by Honda as proof (in court) was without a seal and was not convincing," he told China Daily.

"Only one motor cannot prove that the group has produced some 200,000 such motors, as it is alleged.

"As a famous domestic motor enterprise, there is no need for Lifan to infringe on others' intellectual property rights."

The third accused - the Beijing Zili Ziqiang Motor Shop - said in court at the start of proceedings that since the motors were allegedly produced by two independent entities, the case should not go ahead but be heard separately.

The court did not accept the request and decided the hearing should proceed.

IPR disputes in vehicle production are rising this year together with the booming automobile market. For example, the first-ever lawsuit involving a foreign auto manufacturer in China since the country's entry to the World Trade Organization started in August, with Japan's Toyota suing Chinese car manufacturer Geely for trademark infringement. But no verdict has so far been reached.

(China Daily November 18, 2003)