LVMH Moet Hennessy Louis Vuitton has welcomed a Chinese court's decision to fine two companies for infringing its trademark on Hennessy Cognac.

On Tuesday (29 November), the Shanghai No. 2 Intermediate People's Court ordered two Chinese firms to pay CNY300,000 (US$37,137) in compensation to LVMH and stop infringing the trademark on Hennessy.

The two companies, which imitated the Hennessy trademark and sold their products as imported wine, were also required to publish a notice in a local newspaper to clarify the difference.

LVMH told just-drinks that it "welcomed" the court's decision. "We believe it shows the Chinese authorities want to seriously protect the trademark owner's rights and to punish any trademark infringment. We consider this judgement as a positive result since Hennessy is determined to actively protect its intellectual property rights worldwide."

LVMH found last July that a series of wine products were sold in Chinese supermarkets as Cognac under the Hanlissy trademark.

The wine, distributed by Zhuhai Xiang Mu Tong Trade Co. and bottled by Xiamen Golden Huanya Food Co., was also sold in bottles that were similar in colour, shape and size to bottles of Hennessy.

The court ruled that the English letters of Hanlissy and Hennessy are very similar and said the Hanlissy trademark would mislead consumers.