Shanghai No. 2 Secondary Court has sentenced Shanghai Guangnuo Apparel Company and Guangzhou Funa Clothing Company, which are the manufacturer and distributor, respectively, of Montagut, to stop their illegal manufacturing and selling of wool underwear with "AB" tags and pay RMB100,000 in compensation to Jiangsu AB Group.

In January this year, AB Group, which is the owner of the "AB" trademark, found that the two parties used its "AB" trademark on their wool underwear for men, it then filed a lawsuit against them.

The court said it believed that the two defendants were aware that AB is a famous trademark belonging to AB Group, but they still used the two letters in their trademark to misguide consumers.