A Shanghai-based company who owns the trademark of “Small Yellow Car (小黄车)” filed the lawsuit against ofo, the trademark owner of “ofo Small Yellow Car (ofo小黄车)”, for infringement of their registered trademark and asked for a compensation of RMB 3 million (about $452,000), Chinese media Beijing News is reporting.

As 车 (chē) can mean “car” or vehicle in Chinese, ofo simply referred to its bikes as “ofo sharing bicycles (ofo共享单车)” and “small yellow car (小黄车)”. And in the court, Ofo said that the company first used the trademark “small yellow car”.

Ofo claims that the plaintiff registered the trademark with malicious intent. Yesterday afternoon, Beijing’s Haidian Court heard the case in court. After four hours in court, both parties expressed their willingness to accept mediation.

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Eva Yoo

Eva Yoo is Shanghai-based tech writer. Reach her at evayoo@technode.com