A Chinese court has ruled Japanese retailer Muji must pay RMB626,000 (US$89,000) and apologise to a local firm after losing a trademark-infringement case, according to the South China Morning Post

Muji had appealed a 2017 ruling finding against its use of a trademark currently held by Beijing Cottonfield Textile Corp, which was registered four years before Muji entered China, its largest market outside Japan. The Chinese characters in the trademark translate as “Unbranded, quality goods”.

The phrase was owned by Cottonfield subsidiary Natural Mill. Muji was sued by Beijing Cottonfield and the trademark’s original owner Hainan Nanhua in 2015.

China’s appeals court ruled against Muji this week saying “Beijing Cottonfield Textile Corp has the exclusive rights to the trademark … others may not infringe on that right without permission,” according to the South China Morning Post report.