Paramount Pictures and 1905 Internet Technology, its Chinese production partner, have been fined 2 million yuan ($295,000) over a breach of contract dispute related to product placement in Transformers: Age of Extinction.

A court in Chongqing ordered both companies to pay the money to Wulong Karst Tourism Co., an inland island resort, in compensation and legal costs, the Variety reported.

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Wulong reportedly paid Paramount about 4.8 million yuan (around $712,000) to feature Wulong resort's logo in the final edit of Transformers: Age of Extinction film, the Wall Street Journal reported citing a ruling by the Chongqing No. 3 Intermediate People's Court.

However, instead of the agreed logo of Wulong, scenes of the dramatic landscape of the resorts, which is dotted with limestone formations called karst, were included.

This prompted the company to file a legal complain, arguing that "Without a clear logo, the general audiences have no idea that Wulong is one of the shooting sites." It further added that the lack made it look as if the scenes were "shot in Hong Kong," the Wall Street Journal, reported.

On the other hand, Paramount admitted that the logo indeed did not make it to the film. However, they attempted to make up for the damage, with director Michael Bay creating an advertising spot for the resort and giving props for the resort to use, the Hollywood Reported noted.

The court rejected Paramount and 1905's counter claim, which sought to claim the unpaid sponsorship revenues. Wulong paid only part of the agreed-upon fees after it discovered that its name and logo were not featured in the 2014 blockbuster film. Wulong was also to have paid some 6 million yuan ($850,000) of sponsorship to the production. It paid only 80 percent of the sponsorship fee, the Variety noted.

Meanwhile, a representative from Wulong was happy over the court's decision but was also disappointed as it failed to get the nearly $3 million worth of damages it sought.

TagsParamount, Paramount pictures, 1905 Internet Technology, 1905 Pictures, Wulong Karst Tourism, Transfomers, Transformers: Age of Extinction, product placement