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Trademark war halts iPad sales in Chinese cities

By | February 19, 2012, 12:33 AM PST

HONG KONG — A Chinese company is seeking compensation from Apple for trademark infringement of the iPad name. Following a court ruling in China, the popular tablet has already been taken off store shelves in a slew of Chinese cities.

The computer-monitor manufacturer Proview Technology (Shenzhen), whose parent company is based in Hong Kong, claims that it owns iPad’s trademark rights in China and had never sold it to Apple. The Chinese company says it estimates it could win $2 billion in a U.S. lawsuit.

In a statement, Apple said it bought from Proview the worldwide rights in 10 countries to the iPad name several years ago. In November, a court in Shenzhen, China, ruled against Apple in a lawsuit, but a Hong Kong court had sided with Apple in a related suit.

The legal tussle has had real ramifications for Apple, as retailers in major Chinese cities have been ordered to stop selling iPads, as reported by Reuters.

Proview told the South China Morning Post that more than 30 commerce bureaus have taken action to halt iPad sales. Proview’s lawyer said Apple missed a crucial step when acquiring the trademark, which was to get approval from China’s trademark office.

In 2009, Apple set up a company called IP Application to buy the iPad trademark. According to Hong Kong court records, Proview’s Hong Kong-based parent company had originally agreed to sell the name to IP Application for $55,400.

Last year, a Hong Kong judge upheld Apple’s trademark right to the iPad brand in China. He ruled that Apple was intentionally misled by the various arms of Proview to make its trademark rights ineffective in China. The judge said they “combined together with the common intention of injuring Apple and IP Application by acting in breach of agreement.”

The beleaguered Proview had declared bankruptcy in 2010 and had its bank accounts frozen — sending a strong whiff of desperation.

Photo: Flickr/geographyalltheway.com

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Vanessa Ko

About Vanessa Ko

Vanessa Ko is a Hong Kong correspondent for SmartPlanet.

Vanessa Ko

Vanessa Ko

Correspondent, Hong Kong

Vanessa Ko has written for TIME, South China Morning Post and Phnom Penh Post. She holds degrees from Northwestern University and the University of Hong Kong. She is based in Hong Kong, China.

Follow her on Twitter.

Vanessa Ko

Vanessa Ko

Vanessa Ko does not have financial holdings that would influence how or what she covers.

She writes for SmartPlanet and is not an employee of CBS.

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0 Votes
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Cheap quality Chinese brands mostly create problems to good quality brands
Hi,I am from India,
Chinese are good at copying or creating such problems with good brand!chinese companies manufactures substandard products!
I think,the Chinese company might have played a game with apple brand by producing false evidence of trademarks,not very sure with this!
Posted by Aman16588
Updated - 24th Feb
0 Votes
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cheap quality product
Hi Aman 16588,
Why don't you look at how Apply get the trade mark by deception?
Posted by chinmanwong@...
24th Feb
0 Votes
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complilcated
Whenever you deal with patent infringement, this case has nothing to do with the product, it becomes extremely messy, and toss in international issues, wellllll messy, very messy.
Posted by TwoHerbs
24th Feb
-1 Votes
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Complication?
If Apple are so sure that they don't own the trademark right in China before Proview file for bankrupcy, why they want to fight now. I believe Apple want something for free.
Posted by chinmanwong@...
24th Feb
0 Votes
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Not patent
This is for trademark, not patent.
Posted by slahr
28th Feb
-1 Votes
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@Aman16588 Don't act like an ignorant fool
Almost every electronics you have is manufactured in China or Taiwan (including iPad). Expensive products doesn't mean that brand is good. The first "iPhone" was released in 1990's by Cisco, which I believe Apple legally bought, but looks like they choose to bully in the Chinese market and made Proview go bankrupt. And they had thousands of such products, before iPad was even announced by Apple.
Posted by kirtikar
24th Feb
0 Votes
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Repply:
Thanks for comment,
BUT,there Is difference between iPad manufactured under good management and a duplicate iPad manufactured by a Chinese company!In india,when I bring branded "Made in china "products,Quality is good but when my dad bought cheap Quality Chinese products like Chinese company's mobiles and fancy watches,it stoped working within two days!Moreover within those two days,those worst Chinese company's phone didn't picked signal and the back metal cover of mobile started comming out!So cheap!

Whereas when I bought Chinese manufactured branded Nokia ,the quality was good!This definately means that foreign companies send their quality management team to take care of Quality manufacturing in china!And same is case for apple!
There are so many cheap Quality Chinese cars which are copies of Cheveloret spark,beat,corolla,hummer,Nissan's one SUV!Those chinese cars can't even passes European safety tests and proofs are seen through tests videos!Do you know about Euro NCAP and European crash test standards!
please see,

http://www.autozine.org/Manufacturer/China/BYD.html

And

http://carnut1.blogspot.in/2010/01/byd-f3dm-electric-chinese-corolla-copy.html

Recently,I got an add from a local internet shop for a Chinese tablet,running on duplicte Apple IOS 5 !

And You know what,a duplicte version of iPhone called tPhone is made by a Chinese company,illegally!
Please see,

http://thetechjournal.com/electronics/iphone/here-are-the-top-ten-chinese-iphone-knockoffs.xhtml

See about tPhone (7 th no.)on the above website!
I know that I went slightly off the topic,but still I wanted to clarify something to you!

I am not an ignorant fool,it seems that actually,you should not act as an ignorant fool!
Posted by Aman16588
Updated - 26th Feb
-1 Votes
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Ipad trademark issue
I think this article is little bit missleding. If I remember right, the HK judge did not have the final ruling on the case yet. The preliminary ruling is that Ipad trademark was sold to IP Application not Apple. The means IP Application can use the trademark. If I am the owner of Provision, I will sue IP Application Inc. because it violated the of Trade mark contract by making a competing device, which is Apple's IPad. The sale contract was voided because Apple was violate the non competing clause per contract. If I am the Apple lawyer, I would try to settle this case asap and have Provision to revise the non competing clause.
Posted by chinmanwong@...
24th Feb
-1 Votes
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Schadenfreude?
There's no doubt Apple would want something for nothing, and it is also possible that the Chinese obfuscated - there's history for both actions.

However, I can't help feeling a touch of smugness given Apple's attempts to derail the sale of tablets produced by other manufacturers.
Posted by gjm123
Updated - 27th Feb
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