Tesla solves trademark dispute

US premium electric-car maker Tesla has settled a trademark dispute with Chinese businessman Zhan Baosheng, Beijing No.3 Intermediate People's Court said on Weibo on Tuesday, clearing a hurdle for the company to further its entry into the Chinese market.

Zhan, a businessman from South China's Guangdong Province, registered the "TESLA" trademark in China in 2006, and his application was approved in 2009.

Tesla sued Zhan for copyright infringement in September 2013, demanding compensation of a total of 4.2 million yuan ($672,420) from him. In June 2014, Zhan sued Tesla for trademark infringement, asking Tesla to stop selling cars in China as well as compensation of 23.94 million yuan.

Under the agreement, Zhan agreed to stop using the "TESLA" trademark and Tesla agreed not to seek compensation for the losses caused by Zhan's alleged trademark infringement.