Apple struggles in iPad trademark dispute in China as authorities seize units
Local Chinese authorities have begun seizing iPad 2 units in at least one city as Apple faces an uphill climb in its dispute with a Chinese company over the iPad trademark.
Chinese newspaper Hebei Youth Daily (via Xinhua) reported on Monday that officials from the local Administration of Industry and Commerce (AIC) in the city of Shijiazhuang in the northern province of Hebei had confiscated 45 iPad units from resellers over two days. Authorities told the newspaper that they had received complaints of trademark infringement from Proview Technology (Shenzhen), a company that is suing Apple in China over the issue.
According to IP law professor Stan Abrams of China Hearsay, the AIC is a Chinese federal agency that sits above China's Trademark Office. The agency has the authority to "raid premises, seize documents, equipment, products and counterfeit marks, and it can halt activity and lock down businesses," he noted in a recent report.
Apple purchased the international rights to the iPad trademark from Proview (Taiwan) via a front company in 2006, but Proview (Shenzhen) claims that the deal did not include the rights to the trademark in China, since the Taiwanese company was not authorized to sell them.
Proview (Shenzhen) filed suit last year, but Apple countersued. Last December, a Chinese court rejected Apple's suit. Apple appealed the ruling last month.
As a result of the recent inspections in Hebei, retail shops and electronic stores have reportedly begun hiding their iPad inventory. Vendors told one reporter that they were keeping stock in a back room so as to avoid drawing attention from inspectors.
Chinese officials inspect iPad 2 units after confiscating them. | Credit: Hebei Youth Daily
Apple, which has just five official stores in China, does not have a retail presence in Shijiazhuang. The iPad maker does, however, continue to sell its best-selling tablet on its localized online store. An Apple salesperson told AppleInsider on Tuesday that the company was still able to ship iPad orders to Shijiazhuang.
Proview lawyer Xie Xianghui told the Associated Press that the company has filed complaints in more than 20 cities, asking authorities to destroy promotional materials in violation of its trademark.
Apple's iPad 2 was still listed as "In Stock" on its China online store on Tuesday.
“We haven’t made a demand for economic compensation. We will pursue it through another channel,” Xie said.
Proview is actively pursuing multiple channels in order to put pressure on Apple. Xie said last week that a court in Beijing had readied a 240 million yuan ($38 million) fine against Apple for the alleged infringement. A Shanghai court will hear a lawsuit over the issue later this month.
The company has said it is seeking a total of 10 billion yuan ($1.6 billion) in damages from Apple. According to him, Proview is also demanding a formal apology.
China expert Bill Bishop noted on DigiCha on Monday that, according to Chinese press, Proview is looking to cripple Apple's iPad sales by seeking an export ban from China Customs. Since most of Apple's iPads are manufactured in China, intervention from the country's customs agency could affect the global supply of iPads.
The threat of an export ban in China is even more troubling for Apple as it is reportedly gearing up to launch a third-generation iPad next month. The new device is widely believed to be manufactured by Foxconn and Pegatron in mainland China.
AppleInsider has contacted Apple for comment on recent developments in its dispute with Proview (Shenzhen), but it has yet to hear back from the company.
[ View article on AppleInsider ]
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China expert Bill Bishop noted on DigiCha on Monday that, according to Chinese press, Proview is looking to cripple Apple's iPad sales by seeking an export ban from China Customs. Since most of Apple's iPads are manufactured in China, intervention from the country's customs agency could affect the global supply of iPads.
If they can pull that off that will be devastating to Apple. Are those Brazilian iPad factories up and running yet? Note their market cap is listed as $155 million.
Oh no, 45 units...!!! I better sell my stock tomorrow..!! Haha..!! Those authorities just wanted the latest and greatest tablet on the house.. The funny thing is that since it was a reseller apple did not lose any money over this... The ants are really coming out of the wood work lately... It's funny to see everyone squirm to get a piece of the pie....
You're right. 45 iPads is nothing. Still I don't think apple should take this lightly. Total ban of Chinese exports is serious even just to contemplate it. It would be devastating for the company even if it happened briefly. And something tells me the Chinese will tend to favor their own companies versus filthy-rich American apple! Just a thought.
There's a chess game going on and right now, everyone is watching to see who will blink first. I think (hope) Apple will come out of this with minimal scratches. Something just does not sound right about the entire fiasco.
You're right. 45 iPads is nothing. Still I don't think apple should take this lightly. Total ban of Chinese exports is serious even just to contemplate it. It would be devastating for the company even if it happened briefly. And something tells me the Chinese will tend to favor their own companies versus filthy-rich American apple! Just a thought.
Consider that it's a trademark, not an outright copy of some existing chinese item. All Apple has to do is take the iPad trademark off the product, and in chinese firmware, and that solves the problem. Take example of Nintendo where the same DS product is called iQue in China.
Like if I was Apple and was keeping a backup plan, I'd have the "iPad" trademark not printed on the product assembly line in China, and then have the appropriate trademark applied at the same point the firmware is applied, outside China. That solves the trademark issue.
Or they could call the iPad3 something else, and cease production of the iPad2 in China.
Personally I'm thinking that Apple's going to go to the Chinese government and go "If you want any more of our future business, you will make Proview sell us the trademark." Or Apple could just buy Proview and fire everyone.
"We bought Proview's worldwide rights to the iPad trademark in 10 different countries several years ago. Proview refuses to honor their agreement with Apple in China," said an Apple spokeswoman in Beijing, Carolyn Wu.
And of course that little gang of weasels has the corrupt government on their side, as China is incredibly corrupt and ranks below almost all developed countries.
Chinese news reports say Proview, which makes computer displays, is deep in debt and needs a big settlement from Apple.
So, they're liars, untrustworthy and they're desperately broke. Nobody needs to be Sherlock Holmes to figure out that there lies the perfect motive behind their desperate and laughable move. 45 iPads.
http://abcnews.go.com/Technology/wir...6#.TzoH5JhvnyM
@Phone
@OS
@TV
@MacBook
@Mac
@Care
@Cloud
@Store
@Tunes
@Pod
No one can ever claim ever that they own the mark.
@Pad, where @ is the Apple logo like in the Apple TV (@TV). Just start doing that for all products:
@Phone
@OS
@TV
@MacBook
@Mac
@Care
@Cloud
@Store
@Tunes
@Pod
No one can ever claim ever that they own the mark.
If you're on a Mac just type Shift+Option+K to get the symbol.
Chinese news reports say Proview, which makes computer displays, is deep in debt and needs a big settlement from Apple.
So, they're liars, untrustworthy and they're desperately broke. Nobody needs to be Sherlock Holmes to figure out that there lies the perfect motive behind their desperate and laughable move. 45 iPads.
http://abcnews.go.com/Technology/wir...6#.TzoH5JhvnyM
This Prowiew guys are the scum of our world. This is not hard to see, and companies or people like this are all over the world. What makes me furious is, that the Chinese government obviously tolerates this blatant criminal behavior.
I would've just paid off the government officials (instead of this no name company) so to secure any future product sale. It's really not worth it to fight against the Chinese government, just look at Google, it's still selling at $600 now, same as when they said they'd pull out of China, with Apple basically doubled their stock price during the time period.
Ban on Export of iPads = answer - Brazil or another Location for manufacturing
Apple could Rename iPad that are to be sold in China
Worst case, 1.6B won't end Apple
The larger Q that comes to mind is:
Could China Nationalize
Yes, I am raising Extremely Unusual Possibilities, but then anything can be expected from a Totalitarian State, where in one Region such seizure can happen, while in the rest of the country it's Innocent Until Proven Guilty - i.e. Apple must be found Guilty before any penalty is to be imposed!!! So...
Is it possible that Chinese Government is playing Good Cop Bad Cop against Apple, where the Bad Cop gets to take 45 iPads, and maybe scare AAPL Investors, so to drive AAPL stock down, so that some people in China can buy it at lower prices?
Again, I am just thinking aloud, but at the same time, I see how in China they might be playing by different rules! And then I know that Western Companies were Nationalized not just by Castro's Cuba!
Either way, it's crazy to see some Regional Authorities grab these iPads when this Legal Case hasn't had a Final Ruling, which would likely go into Appeal... By the time all Appeals are exhausted, Apple could have alternate location for iPad Manufacturing, outside China!!! The Chinese jobs would be lost, so that the owners of one company can extort money from Apple!!!
This also reminds me of Cyber Squatting, where people bought up Domain Names, so that they could later sell it to the actual big companies who missed on buying those Domain Names...
Did this Chinese Proview Company actually make any product called iPad that could be confused with Apple's iPad? Is that product similar to Apple's iPad in any way, that the consumer can buy one of them by mistake?
The Funniest Thing about China is that it's supposed to be Workers' Paradise, ala the Former Soviet Union! And here we are, with The Filthy Rich Capitalist Apple taking a Lead in Abuse Investigations, to get better working Conditions for the Poor Chinese workers!!!
As I've often seen it said here on AI, if Foxcon was among the worst places to work in China, the workers would have gone to work elsewhere! I also think it's up to Chinese Government to Protect it's workers! If those workers are not leaving Foxcon for better jobs elsewhere, then:
? Foxconn is not as bed as Media says it is, or
? There are not that many other jobs in China, which is not Apple's fault, right
Maybe all that Noise about poor Conditions is an Extortion to Negotiate a Bigger Raise yet, by portraying Apple as Explotator Monstern, Evil Capitalists?!
? But then it's up to Foxconn, not Apple, to either Pay more, or call those workers' Bluff, by saying:
Take this job or Leave!!!!
Either way, I'd love to see Apple do more manufacturing elsewhere, but China, because this iPads Grab is either too One Sided Fluke, or possibly a move by the Chinese Main Government which is playing Good Cop Bad Cop, in order to Shake Down Apple!!!
All of the above are my concerns, and not my final opinions! I am looking forward to learning from those who know a lot more about this than me! Thanks in advance for your responses!!!
If they could have waited a couple of months before this 'confiscation' they could have been taking home iPad 3's to their kids instead of just iPad 2's...