Apple's Suit Over iPad Name Rejected By Chinese Court

HONG KONG (Reuters) - A court in southern China has rejected a lawsuit by Apple Inc, accusing a Chinese technology company of infringing its iPad trademark, a newspaper reported on Tuesday, the latest move in a protracted tug-of-war over the name.

Apple confirmed the lawsuit but declined to comment further.

The consumer device giant -- a market leader in both smartphones and tablets -- has had to face some roadblocks in China, which is a key growth region for the company. Earlier this year, fake Apple stores were discovered in southwestern Yunnan province.

The company is also constantly battling counterfeiters.

In the lawsuit over the use of the iPad name, the Intermediate People's Court in the southern boomtown of Shenzhen rejected Apple's complaint against Proview Technology (Shenzhen). Proview, it said, lawfully registered the iPad trademark as long ago as 2000 for products in a number of countries including China, the Southern Metropolis Daily newspaper reported, citing court documents.

Apple, which launched its iPad tablet computer some years after that, was initially panned by many on Twitter and other online forums for picking a name that was synonymous with a woman's hygiene product.

But the jokes died after the roaring success of the product that no other company has been able to beat in sales.

The right to use the iPad name in China is crucial for Apple, where the company is in the process of opening more stores. Executives have said they have just scratched the surface in China in terms of sales.

Proview Technology (Shenzhen), and the Shenzhen court were not immediately available for comment when contacted by Reuters.

Proview was also taking legal action, seeking 10 billion yuan ($1.5 billion) in compensation from Apple for copyright infringement, Caixin Online reported in October.

(Reporting by Twinnie Siu in Hong Kong and Melanie Lee in Shanghai; Editing by Andrew Callus, Bernard Orr)

Comments

[Mitchman57]

04:55 PM on 12/07/2011

Maybe 'Realipad' isn't taken yet.

[Bob Grace]

02:10 PM on 12/07/2011

Just got a new "ISuck". Every time I touch the screen an American loses a job.

[Bob Grace]

01:59 PM on 12/07/2011

Confucius say "Before you embark on a journey of revenge, dig two graves"
.

[ehjay]

11:45 AM on 12/07/2011

Proview has been around for a very long time,. It's not surprising that they hold the title to the term "ipad". Chimei Corp.has been around for about 50 years. They market a 24" LCD - LED screen that is only 8mm thick. Chimei is about to begin manufacturing some Apple components. Apple is an American Corp. but the Apple product is part Chinese. Get used to it Apple fans. Blame the Lobbyists, Capitalist American Corp., and Washington, for the loss of all those jobs to other countries. Free Trade was America"s downfall.

[theveggiedude]

07:52 PM on 12/07/2011

"A Proview subsidiary in Taiwan had sold the iPad trademark rights to a U.K.- based company called “IP Applications”. In 2010, the U.K.-based company then sold the trademark rights to Apple." - http://tinyurl.com/78jd9vp

If this is true, the court should be going after Proview for scamming the UK Company out of a lot of money.

[rnb]

06:20 AM on 12/08/2011

What's the scam? The article doesn't say that the Taiwan subsidary intentionally misled the UK company. It only says the court decided the contract wasn't legally binding because they didn't get the right people's input. Never attribute to malice that which can be attributed to stupidity.

[2crudedudes]

10:57 AM on 12/07/2011

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHHAAHHAHAHAHAHAHAHAHHAHHAHAHAHHAHAHAHAHAHAHHAHAHAHAHHAHAHHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHHAAHHAHAHAHAHAHAHAHHAHHAHAHAHHAHAHAHAHAHAHHAHAHAHAHHAHAHHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHHAAHHAHAHAHAHAHAHAHHAHHAHAHAHHAHAHAHAHAHAHHAHAHAHAHHAHAHHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHHAAHHAHAHAHAHAHAHAHHAHHAHAHAHHAHAHAHAHAHAHHAHAHAHAHHAHAHHAHAHAHAHAHA

That is all.

[maverick9808]

10:41 AM on 12/07/2011

That is awesome, welcome to China!

that's what you get for outsourcing american jobs to our largest world rival.

[justwhendoesitend]

11:28 PM on 12/07/2011

Most of the computer manufacturing by all US companies is done in Asia. Why not pick on IBM 65+% of their employees are over seas. At least Apple has it's support being based in the country they are in, so in USA you talk to someone in USA.

I certainly would love those jobs to return, but there is not incentive for US companies to invest in USA.

It is not just computers, look at where your HVAC is built....

[maverick9808]

01:45 PM on 12/08/2011

The incentive is security and preferential treatment during litigation. There are plenty of benefits which companies gain by remaining in the united states.

Obviously, as most american's i'm sure are by this point, the fact computers are manufactured over seas is house hold knowledge, of course in addition to a host of other electronic and mechanical components.

Truly my comment was more a jab in the ribs of a company which has slowly been brought out into the light as the swindling Co they are.

[nirvana101]

10:35 AM on 12/07/2011

Apple will not defy the Chinese court if it so rules because all Apple products are made in China.. Seems like they got themselves caught between the proverbial rock and hard place.. put all your eggs in one basket and this is what happens..

[Mitchman57]

10:09 AM on 12/07/2011

Wow. Apple innovated someone else's trademarked name. They ARE good.

[No Yards]

11:06 AM on 12/07/2011

Ouch.

So Apple no longer owns the iPad name, and the iPad design patent is likely to be overturned.

Now fanbois will shortly be able to buy a $50 public domain Made, registered, and designed, in China "iPad" and still look as cool as those paying $500.

[David G Kramer]

09:11 AM on 12/07/2011

Apple calls this factoring: take money up front-pay back at the end. 10 Million invested today is worth 100 Million tomorrow. So, to lose to the Chinese is and was part of the plan as to delay payment via their court system is another. Amazing isn't it? Apple sells 2 Billion in China, invests it over 5 years and turns a profit of 6 to 10 Billion and then pays off China's court award for 1.5 Billion....GREAT JOB APPLE! Good old American Wall Street polices at work! So, the cost factor of making 10 Billion is 1.5 or 15%. Nice trade balance! Let's see, was that a law they broke? No one arrested? What games these people [play]...

[c1c2c3c4c]

09:06 AM on 12/07/2011

they where set up from the beginning. the company registered a unused name in 2000 before apple, then sold it to make money from the highest bidder but retained the china rights knowing apple would sell something with that name in the future.

I'm the last person to stick up for apple but that was just a scam from the start, 1billion dollars for something that they never used nor had planes to use.

and china will rule in there favor because that's what practices there country has historically done.

[sfurr]

03:28 PM on 12/07/2011

Yes, because back in 2000! everybody knew Apple was going to introduce something by that name.

Since they are supposedly omniscient visionaries, then why would Apple not have foreseen such events and registered all their potential trademarks. LOL!

[c1c2c3c4c]

06:00 PM on 12/07/2011

They did lol they bought almost every I designation around 2000

[One Last Time]

08:26 AM on 12/07/2011

Riiiight.

And all members of the female Olympic team are over 16.

The ink probably is still wet on that Chinese trademark application.

[c1c2c3c4c]

09:08 AM on 12/07/2011

i agree, this sounds like another way for china to get money from us...

do you know we send china aid and barrow from them at the same time?

[Mitchman57]

10:09 AM on 12/07/2011

.... and other countries.

[Ipanema]

05:57 AM on 12/07/2011

So Apple stole the name "ipad" from the Chinese. That ought to silence those noxious Apple fan boys!

[PhillyKing]

09:51 AM on 12/07/2011

ummm, nothing will ever silence them... not even facts...

[poster1122]

02:48 PM on 12/07/2011

Not quite.

In 2006, Proview sold the "global trademark" rights to IPAD to a company owned by Apple for 35K british pounds. Proview, however, argues that the rights did not extend to the trademark they owned in China because it was actually held by its Hong Kong based subsidiary, and not the parent company.

At issue is whether Apple's attorneys were fooled or were lax in negotiating the sale of the IPAD name vis-a-vis China. One imagines that Apple did not intend to buy the IPAD name for everywhere except China.

So, it's not really a question of them "stealing" anything. It's a question of whether Proview successfully found a loophole in the sale they made that may allow the company to extract even more money from Apple now that the IPAD name has garnered so much value.

[malyka5]

05:35 AM on 12/07/2011

Serves Apple right!!

[Lucille]

04:15 AM on 12/07/2011

China giveth, China taketh away. China allows imitation Apple Stores to exist and sell either older or imitation Apple products (until recently unknown to their customers), ripping off Apple completely, and although they may have closed a few of these imitation stores (for appearance sake), ultimately because the Chinese are making money, the government allows the fraud to continue.

In the future the Chinese court rulings (in the name of patriotism and profits), will probably always be against Apple in favor of a Chinese company. Yet perhaps this is exactly what Apple deserves for abandoning American workers.

Also, the Chinese appeared to have a deep respect for Steve Jobs and he was seemingly revered by them, but Steve Jobs is dead now so evidently all bets are off.

[Layman23]

01:18 AM on 12/07/2011

Ah a Chinese court upholding trademarks. What an irony ! Its like Al-Qaeda marching for peace.

[No Yards]

11:12 AM on 12/07/2011

oh yeah .. so Apple goes to China to make their products to take advantage of low wages and lax Chinese and international laws, & regulations enforcement ... they now can't whine on about how China's laws are "unfair" when that advantage Apple used to enjoy has spun around and bit them on the butt.

[Layman23]

05:49 PM on 12/07/2011

Huh? Labor laws and trademarks?