The firm wants the fast food chain to immediately remove the image, and is reportedly seeking $30m (£23.1m) in compensation
Bruce Lee's daughter sued a popular Chinese fast food chain for allegedly using an image of the late martial arts star without permission.
Bruce Lee Enterprises, a company run by Shannon Lee, accuses Real Kungfu has used the image in its logo without permission, reports BBC.
The firm wants the fast food chain to immediately remove the image, and is reportedly seeking $30m (£23.1m) in compensation.
The restaurant argues local authorities approved its use of the logo.
The image depicts a dark-haired man in a martial arts pose.
"The Real Kungfu chain's logo is one that the company had applied for and obtained after a rigorous screening by the national trademark agency, we have already been using this for 15 years", the company said in a statement posted on China's Weibo platform.
"We are baffled that after so many years we are now being sued, and we are currently energetically studying the case and preparing our response."
The Guangzhou-based fast food chain, which is known as Zhen Gongfu in Mandarin, was founded in 1990 and has around 600 outlets across China.
Bruce Lee Enterprises handles the merchandising and licensing of the kung fu star's image.
In a statement on its website, the company said it is "dedicated to sharing the art and philosophy of Bruce Lee to inspire personal growth, positive energy, and global harmony and aims to keep the martial artist's energy alive".
Bruce Lee Enterprises did not immediately respond to a request for comment.
The case is likely to be watched closely as the Chinese government has in recent years promised to increase protections for intellectual property rights.