S. Korea's 'Chanel' bar goes out of vogue

A small South Korean bar has been ordered to pay damages to France-based fashion house Chanel for using its name, a court spokesman said Tuesday.

The Seoul Central District Court ordered the Chanel Business Club located in the southern suburbs of Seoul to pay 10 million won ($8,800) in compensation, he said.

The French firm claimed the bar's years-long use of "Chanel" in signs and leaflets for its business had damaged "the distinctiveness and fame" of its registered trademarks.

It said the bar had damaged Chanel's image by using its trademarks for services seen as negative.

The judgement was made after the bar owner failed to reply within a legal deadline of 30 days following official notification of the lawsuit.

In a similar case, the Daejeon High Court in 2010 ruled that a karaoke bar's use of the name Burberry violated the rights of the British luxury brand, Yonhap news agency reported.