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Chinese city seizes Apple iPads in name dispute

By Joe McDonald

AP Business Writer

POSTED:
LAST UPDATED: 05:22 a.m. HST, Feb 13, 2012


BEIJING >>  Authorities have seized Apple iPads from retailers in a city in northern China due to a dispute with a domestic company that says it owns the iPad name, an official said Monday. The Chinese company said it is asking for similar action in more than 20 other cities.

The dispute with Shenzhen Proview Technology threatens to complicate Apple's efforts to sell its popular tablet computer in China, its fastest-growing market.

Investigators started seizing iPads on Thursday in Shijiazhuang, southwest of Beijing, after receiving letters from Shenzhen Proview, said an official of the economic investigation unit of the city's Xinhua district. He would give only his surname, Wang.

"All the Apple iPads in the big shopping malls and supermarkets have been taken off shelves in Xinhua district," said Wang. He wouldn't say how many devices had been seized or the number of retailers affected.

An Apple Inc. spokeswoman in Beijing, Carolyn Wu, declined to comment.

Cupertino, California-based Apple has five stores in mainland China — two in Beijing and three in Shanghai — and authorized resellers in other cities. Phone calls to the Beijing and Shanghai commercial bureaus, which enforce trademarks, were not answered.

Shenzhen Proview registered the iPad name in China in 2001. Apple bought rights to the name from a Taiwan affiliate, Proview Taipei, that registered it in various countries as early as 2000. The mainland company says it still owns the name in China.

A Chinese court rejected Apple's complaint in December that Shenzhen Proview was violating its rights to the iPad name. The court ruled Proview is not bound by a 2009 agreement under which Proview Taipei transferred the trademarks to Apple for 35,000 pounds ($54,700).

Shenzhen Proview says it filed a trademark violation complaint in January with the commercial bureau of Beijing.

The company has asked authorities in more than 20 cities to investigate and to destroy promotional materials that violate its trademark, said its lawyer, Xie Xianghui. He declined to identify the cities, saying that might disrupt investigations.

"We haven't made a demand for economic compensation. We will pursue it through another channel," Xie said.

Shenzhen Proview Technology is a subsidiary of LCD screen maker Proview International Holdings Ltd., headquartered in Hong Kong.

___

AP researchers Zhao Liang and Yu Bing contributed.







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Christopher_murp wrote:
There is an easy solution to this. Apple can have it's products manufactured and sold elsewhere. When China no longer reaps the benefits of manufacturing or acquiring these computers, then perhaps they will decide to play ball nicely.
on February 13,2012 | 04:36AM
localguy wrote:
Notice how discriminationg the Chinese can be. If a western country files a similar trademark issue, the Chinese government might take action in 5-10 years. If a Chinese company files a trademark issue, they take action the next day. Truth is you cannot trust a communist country like China to play fair. The politburo takes care of it's own first. Just another reason why China will never be seen as a true world leader, always a follower. It's what they do.
on February 13,2012 | 05:30AM
nuuanusam wrote:
It is only a tactic to try to extort money from Apple; the similar tactic was used many time before in different cities with different foreign companies. This country is so lawless that it is unbelievable.
on February 13,2012 | 09:10AM
cojef wrote:
It's tough to be Number 1, especially in China. They have a rich and very ancient history and are proud that most of the current developments in modern science had Chinese origin as its base.
on February 13,2012 | 08:32AM
9ronboz wrote:
typical of red china
on February 13,2012 | 10:54AM
entrkn wrote:
Apple will prevail.
on February 13,2012 | 11:41AM
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