Politics on Apple's side as it faces trademark dispute in China

Apple's iPad could be banned in China if the company loses a high stakes appeal in Chinese court

Politics could tip the scales in Apple's favor for a high-stakes legal battle that will decide ownership of the iPad trademark in mainland China. But some legal experts remain divided on whether it will be enough to help the U.S. tech giant avoid a ban of its iconic tablet in the country.

"This is a really famous case, and Apple is not only a multinational company, but employs a lot of people," said Stan Abrams, an intellectual property lawyer and professor at Beijing's Central University of Finance and Economics. "The political argument in itself does favor Apple."

Apple faces the prospect of paying fines totalling millions of U.S. dollars and seeing its iPad banned in the country if the company loses a court battle with a little-known Chinese firm called Proview, which has also claimed ownership of the iPad trademark in China.

On Wednesday, Apple and Proview exchanged arguments during a court hearing appealing a December ruling that rejected Apple's claims to the iPad name. The dispute centers on whether Proview sold the iPad trademark to Apple in 2009, given that the transaction was made not by Proview's headquarters, but by a subsidiary in Taiwan.

"The legal issues are kind of hairy when you look at technical arguments. Did one company authorize the other to act?" Abrams said. The court could go either way, he said.

But Chinese authorities could decide to factor in Apple's importance to the country when the court makes it decision, he said. "Apple pays its taxes, and it's popular. Those kind of things matter," Abrams said. "Politically there is not as much of an argument for Proview."

Proview, a Chinese display vendor, has shut down its business after seeing its funds dry up following the financial crisis in 2008. The company, now controlled by eight banks, wants Apple to pay US$400 million for the iPad trademark.

For months now, Proview has been filing lawsuits and complaints to request authorities stop iPad sales, in an effort to pressure Apple to settle, according to legal experts. Last month, Proview also filed a lawsuit in the U.S. against Apple, alleging that the U.S. tech giant had misled Proview in selling off its iPad trademarks.

Although Apple tried to present new arguments in Wednesday's court hearing, the company will still likely lose its legal battle against Proview, according to Zhao Zhanling, a legal expert on China's information technology law.

During Wednesday's court hearing, Apple had tried to establish that Proview's top management was fully aware it was selling off its iPad trademarks for mainland China. The evidence included emails sent by officials Apple claims worked at Proview's headquarters in Shenzhen.

Zhao, however, said Apple's arguments were unconvincing. "I think there is little hope Apple will win," he said.

Apple instead will have to weigh between settling with Proview or changing the name of its iPad product in order to sell its tablet in China. If Apple chooses to change the tablet's name, Chinese authorities will still want to penalize the U.S. tech giant for past iPad sales because of trademark infringement, Zhao added.

"I think vendors will stop selling the iPad in order to avoid any risk of seeing legal action. Some websites have already stopped selling the iPad," he said. "So in the short term people won't be able to buy the iPad."

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?