The People's Court of Shanghai Pudong District ordered on Thursday privately owned Suzhou Wanping Sewing Equipment Co. in eastern Jiangsu province to pay 120,000 yuan to the Japanese company in damages.
The court also ordered the Suzhou company to publish the verdict in newspapers.
The Japanese company said it registered the "JUKI" brand in China in 1981 and asked for 300,000 yuan in compensation and a public apology from the Suzhou Company, according to the court.
The Suzhou company was convicted of falsely attaching a "JUKI No.1" label to the underside of 1,050 industrial sewing machines that it sold to an Indonesian company in November 2005.
When the Suzhou company applied to Shanghai Customs to export the machines in December 2005, customs officers confiscated the machines and the company was fined 50,000 yuan for violating the brand rights of Juki Corporation.
The case was later reported to the local administration for industry and commerce in Suzhou, which discovered that the Suzhou company had already exported 1,035 sewing machines marked with the same label to the Indonesian company in April 2004.
The administration in June 2006 seized manufacturing molds at the Suzhou company as well as products in storage. The company was fined a further 600,000 yuan.
The Tokyo-based Juki Corporation was founded in 1938 and it began to sell products in China in the 1980s. It now has 10 branches in China -- six in Shanghai, two in Zhejiang, one in Hebei and one in Hong Kong -- and employs more than 2,500 employees.
The world's No.1 sewing machine producer, Juki has 30 percent of the global sewing equipment market and its sales in China contribute nearly 30 percent of its global revenue, according to the company.
