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The restaurant argues local authorities approved its use of the logo.
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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.
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.
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The case is likely to be watched closely as the Chinese government has in recent years promised to increase protections for intellectual property rights.