A Chinese appeals court has ruled against New Balance in an ongoing trademark infringement case, and has ordered the U.S. sportswear company  to pay five million yuan ($756,945) in compensation to a Chinese company, as a result. In its ruling, the Guangdong court upheld an earlier ruling against New Balance’s use of a Chinese language trademark of its own name. 

New Balance spokeswoman Amy Dow said the firm was “disappointed” by the ruling and was considering taking the appeal process further. “This ruling is particularly concerning as it is contrary to the rest of the developed world’s understanding of Intellectual Property,” Dow said in emailed comments on Friday, adding the ruling could set a “poor precedent.”