A court in Shanghai found in favour of Italian luxury brand Fendi this week, ruling in a retrial of the case that the brand should be compensated by Capital Outlets Commercial Development and Shanghai Yilang International Trade for trademark infringement and illicit competition, according to a report in Tencent News.

This legal case began back in 2016, when Fendi discovered Capital Outlets and Shanghai Yilang International Trade were selling grey market Fendi goods they had parallel-imported into China from France out of stores with Fendi signage and packaging, which Fendi said misled consumers into believing they were buying directly from a brand-run outlet.

Shanghai Yilang International Trade, which has been registering “Fendi”-related trademarks in China since the 1980s, argued that they were selling legitimate products under their legally obtained trademarks.

In 2018, the Shanghai Higher People’s Court found in favour of Fendi, agreeing that the use of the Fendi signage on stores and packaging was misleading to consumers. The court ordered Capital Outlets Commercial Development and Shanghai Yilang International Trade to pay 350,000 yuan ($54,000) in compensation.