The Court also ordered the Chinese company to pay Rmb500,000 ($71,000) in damages.
The April 8 decision ends a five-year battle between Ferrero and Montresor (Zhangjiagang) Food.
In 2003 Ferrrero launched legal action against Montresor, maker of the Tresor Dore chocolates which, Ferrero argued, are wrapped in packaging deceptively similar to the famous Ferrero Rocher hazelnut-centered chocolates, but which cost one third of the price.
Ferrero lost at the first hearing but then won at the Tianjian Appeal Court in January 2006.
It is already hard for Italian companies, and foreign ones in general, to get into China, overcome resistance, build up a commercial network and invest in the country, only to be faced with a strong and invisible enemy such as the counterfeiting industry, the company said in a statement to Hong Kong newspaper the South China Morning Post.
The confectionery maker went on to say that despite having spent more than $1 million fighting counterfeiters, it is looking to make further investments on the mainland.
There are at least 35 chocolate products that look similar to Ferrero Rocher in Chinese supermarkets, according to mainland media reports.