(Yicai Global) Aug. 2 -- A Shanghai-based company is suing bike-sharing giant Ofo, famous for its bright yellow bikes, for CNY3 million (USD447,000) under claims that it infringed upon the firm's intellectual property, a court in Beijing's Haidian district said on July 31 after accepting the case.

The sharing platform, run by Beijing-based Bikelock Technology Co., was initially named Ofo Shared Bikes when it began in 2014, and users soon began to call its bicycles 'xiao huang che' (little yellow bikes). The company changed its name to include the phrase on May 17 this year.

However, software developer Shu Ren Shanghai Smart Technology Ltd. applied to register the Chinese phrase in July 2015 for one of its own products, an app it released to Apple's App Store on Dec. 14, 2015. The app has since been updated on Dec. 25, 2015; May 31, 2017 and July 28, 2017.

Shu Ren claims that Ofo used the phrase through advertising and other promotions to relate directly to its shared bikes, which will cause confusion and lead the public to dissociate the trademark from its owner.

The plaintiff believes that its ability to use the trademark to build a reputation, expand its business and develop a sound corporate brand has been damaged by Ofo, and requested the court holds the defendant responsible for using the trademark and orders it to immediately cease infringing acts, including stopping use of the phrase 'xiao huang che;' issue statements across relevant media to negate the adverse impact of the infringement; compensate the plaintiff's economic losses and pay reasonable expenses, including notarial and counsel fees that are currently around CNY55,000 (USD8,186).