On October 16, Shanghai High People's Court  affirmed the lower court's ruling. The court ordered Zhuhai Xiangmutong Trading Company and Xiamen Golden Huanya Food Company to immediately stop infringing the Hennessy trademark and pay a damage of RMB 300,000 to Societe Jas Hennessy & Co.

In March 2005, Societe Jas Hennessy & Co., a world-renowned cognac producer, sued the two Chinese companies at the Shanghai No.2 Intermediate People's Court for infringing its trademark. On November 29 the same year, the court made the first instance decision and ordered the two defendants to immediately cease the trademark infringement, remove negative effects, and pay a damage of RMB 300,000 to the Societe Jas Hennessy & Co.. The two defendants lodged appeals . 

 In the second instance, the Shanghai High People's Court rejected Xiangmutong's claim that it used its own legal trademark and its trademark was completely different from that of Societe Jas Hennessy & Co.. The Court also overruled Golden Huanya's claim that it was not the co-infringer and thus should not be liable in the case.