Chinese company seeks ban on Apple’s iPad moving in and out of China
In what is reportedly being viewed as a last-ditch effort by a Chinese tech firm to resurrect its fortunes from under a mountain of debt, the company Proview is seeking to ban further shipments of Apple’s iPad in and out of China.
Proview and Apple have been entangled in a legal battle over the trademark of the iPad name in China, with the former company claiming it started developing a tablet product with that name back in 2000.
Apple’s claim is that it acquired Proview's global rights to the trademark, including the iPad name, in 10 countries many years ago. Apple reportedly acquired the rights to the iPad name from Proview’s Taiwan subsidiary for $55,000.
Proview Technology (Shenzhen) contends the sale of that trademark did not cover its use in Mainland China.
Apple reportedly lost a court case to Proview Technology in Shenzhen late last year, siding with Proview’s claim of ownership of the iPad trademark. There is another hearing scheduled for February 29.
There are reports that some Chinese cities have ordered retailers to cease selling Apple's iPad because of the trademark dispute.
The chief executive of Proview Technology (Shenzhen) admitted to Reuters the firm faces an uphill climb with Chinese Customs’ ability to enforce the ban.
"The Customs have told us that it will be difficult to implement a ban because many Chinese consumers love Apple products. The sheer size of the market is very big," said Proview CEO Yang Long-san.
"We have applied to some local customs for the ban and they'll report to the headquarters in Beijing," he told Reuters.
Proview International posted a net loss of $97 million for the final six months of 2009 and its shares have ceased trading since August of 2010, Reuters reported.
According to reports out of Shenzhen, Proview is seeking $1.6 billion in compensation from Apples over the trademark infringement claim.
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