Honda motor company has sued China's largest private motorcycle manufacturer over a trademark dispute and demanded compensation of over $2 million.

The Japanese company claims Chongqing Lifan Industry (Group) Co. Ltd uses `sor' on its products, which resembles its `scr', especially the way it is written, a report said today.

The Shanghai No. 2 Intermediate Peoples Court yesterday heard the case filed by Honda and its branch company in Guangzhou, capital of south China's Guangdong province.

In its complaint, Honda said that in 1999 it won approval from the Trademark office of the State Administration for Industry and Commerce to register `scr' as its trademark.

Xin Zhesheng, for the plaintiff, said Honda only formally endorsed its Guangzhou company to use `scr'.

Honda has demanded compensation of more than $ 2 million as well as more than $ 21,800 in legal fees, but withdrew a request for a public apology.

But Lifan insists the compensation claim is groundless and said it has never used `sor' on its products.