HMV Group, the British-based music retailer, said it had raided a pirate store illegally operating under its name in Guangzhou but admitted the store remained in operation.
HMV said the infringing store, which operated under the name 'HMV China', had been forced to stop using the HMV name but still used the group's slogan 'Music at its Best'.
The Guangzhou store also continued to use HMV's pink and grey colour scheme and had identical layout to HMV's stores in Hong Kong, including the listening posts where customers could use headphones to listen to selected CDs.
HMV Hong Kong financial administration director John Fu Yiu-cheong said: 'It is really a direct copy of one of our stores.
'We are getting further legal counsel and we will make a strong objection to this.' Mr Fu said the raid took place late last month and was undertaken through the company's solicitor and the Guangzhou Authority of Industry and Commerce.
He said that during the raid, senior officers at the pirate store were unable to produce evidence the operation had been authorised to use the HMV trademark.