Coca-Cola is facing a lawsuit in China over alleged trademark infringement, AFP reported today.

The soft drink giant, a court in Shanghai heard yesterday, is alledged to be violating the trademark rights of a Chinese product named 'Ku Hai' with its own brand 'Qoo', which is translated to 'Ku Er' in Chinese.

The claims were made in a lawsuit by the owner of 'Ku Hai', Shanghai Yaqing Industry and Trade Company, which also claims Coke's product resembles its brand in appearance and meaning.

Shanghai Yaqing Industry and Trade Company said if Coca-Cola agreed to settle out of court it would then withdraw the charges.

However, Fu Qiangguo, a lawyer representing Coca-Cola said that will not happen unless Shanghai Yaqing itself agrees to rescind charges.