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In Shenzen, Apple can’t say iPad

Will an iPad under another another name still be an iPad?

business Updated: Dec 07, 2011 20:54 IST

Will an iPad under another another name still be an iPad?

Apple may well be about to find out. A Chinese court this week rejected its lawsuit against a local company for infringement of its trademark on the term iPad. It may have to sell its tablet computer under a new name — or cough up $1.66 billion to Proview Technology (Shenzhen).

The Municipal Intermediate People’s Court in Shenzhen, a southern Chinese city neighbouring Hong Kong, threw out Apple’s suit against Proview Technology (Shenzhen), a subsidiary of Hong Kong-headquartered Proview International Holdings Ltd, which also has a branch in Taipei.

Proview Taipei registered the ‘iPad’ trademark in a number of countries and regions as early as 2000 and Proview Shenzhen registered the trademark on the Chinese mainland in 2001, long before Apple launched its iPad tablet.

Apple bought the rights to use the trademark from Proview Taipei in 2009 for £35,000 ($54,616).

However, Proview Shenzhen reserved the right to use the trademark on the Chinese mainland.

The two sides have been entangled in a legal battle ever since.

Proview Shenzhen, once a famous flat-panel display producer, is now on the brink of bankruptcy due to debt to banks in the wake of the global financial crisis.

Li Su, the president of Beijing-based Hejun Vanguard Group, a leading management consultancy firm, has been entrusted by banks to assume the post of “debt restructuring consultant” for Proview Shenzhen.

“Apple’s actions are strange. They had not obtained the rights to use the ‘iPad’ trademark when they began to sell the iPad on the Chinese mainland in September last year,” Huang Yiding of the Hejun Vanguard Group’s public relations department was quoted by state-run Xinhua news agency as saying.

“Their copyright infringement is very clear. The laws are still there and they sell their products in defiance of laws.

The more products they sell, the more they need to compensate (Proview Shenzhen),” he said.

China, where a plethora of Apple products are assembled, is also a major market for iPhones and iPads. It is also notorious for ripoffs of famous brands.

First Published: Dec 07, 2011 20:50 IST