iPad launch overshadowed by China trademark row

On the eve of the much-anticipated debut of Apple Inc.'s new iPad, a trademark row with a Chinese firm continues to hang over the tech giant's popular tablet.

 

China's Proview Technology (Shenzhen) Co. Ltd., a debt-ridden maker of flat panel displays, has an ace up its sleeve: the rights to use the iPad name in China.

 

The rights are in the middle of a dispute between Shenzhen Proview and Apple dating back to June 2010, when Apple sued Proview and claimed exclusive ownership of the iPad trademark, Caixin.com reported.

 

"An ultimate victory for Apple could strengthen the iPad's marketing presence in China. But if Proview wins, the American company could be forced to pay US$400 million in damages as well as government fines. In a worst-case scenario, authorities could ban iPad sales in China as well as exports of the Chinese-made devices," it said.

 

Despite its seemingly feeble financial status, Shenzhen Proview fought back in February, getting the support of the Chinese government's State Administration for Industry and Commerce (SAIC).

 

In turn, this led to Apple iPad computer tablets pulled from store shelves in several cities in China.

 

Shenzhen Proview held its iPad trademark in China while its business rapidly sank.

 

Name claim

 

Apple had based its 2010 name claim on a 2009 agreement with Proview Taiwan Ltd. which, like the Shenzhen firm, is a unit of Hong Kong-based Proview International.

 

The lawsuit was thrown out in December by the Shenzhen Municipal Intermediate People's Court, which ruled Shenzhen Proview was not a party to the deal signed by Proview Taiwan and an Apple intermediary in Britain called IP Application Development Ltd.

 

Apple appealed the decision to the Guangdong Provincial High Court, which adjourned without a verdict.

 

Trademark infringement investigation

 

Shenzhen Proview attorney Ma Dongxiao announced through his microblog February 13 that SAIC branches across the country had been asked to investigate alleged trademark infringements in their jurisdictions by Apple.

 

These agencies, which operate under the central government and State Council, can block any product's sale in their area.

 

"As of February 14, nearly 20 of these departments in nine provinces and municipalities had agreed to Shenzhen Proview's request. Media reports say probes had gotten under way in Shanghai, Guangdong, Hebei and Jiangsu," Caixin said.

 

Ma also said his client had filed lawsuits in Shanghai and Guangdong courts against Apple and some of its franchisers in China, claiming Apple violated Shenzhen Proview's trademark rights and demanding a nationwide ban on sales of Apple iPads.

 

Shenzhen Proview was also preparing to ask the General Administration of Customs to ban all imports and exports of Apple iPads, which are manufactured in China.

 

For its part, Apple asked online retailers including Amazon Joyo, Suning and Tesco to stop selling iPads. — TJD, GMA News