First appeared in Associated Press
A Chinese company said Tuesday it will ask customs officials
to ban imports and exports of Apple's iPads due to a dispute over ownership of
the trademark.
All of Apple's iPads are manufactured in China, meaning
global sales of the popular tablet computers might be affected if authorities
agreed to enforce such a request by Shenzhen Proview Technology.
The dispute with Proview, which won a court ruling that it
owns the iPad name in China, has resulted in authorities seizing iPads from
retailers in one city. Proview said it has asked for enforcement in 30 other
cities.
"We are now working on a request to China Customs to
ban and seize all the import and export of the iPad products that have violated
the trademark," said Xie Xianghui, a Proview lawyer. He gave no indication
when the request might be filed.
Apple, based in Cupertino, California, defended its
ownership of the iPad name.
"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 Inc. spokeswoman in
Beijing, Carolyn Wu.
Wu declined to comment on the possibility of Proview
requesting a ban on iPad imports and exports.
China is Apple's fastest-growing market. Its iPads and
iPhones are manufactured by a contractor, Taiwan-based Foxconn Technologies
Group, at factories in southern China.
Shenzhen Proview Technology registered the iPad trademark in
China in 2001. Apple bought rights to the name from a Taiwan company affiliated
with Proview but the mainland company says it still owns the name in China. A
Chinese court rejected Apple's claim to the name in China last year. Apple has
appealed.
"Our case is still pending in mainland China," Wu
said.
Chinese rules allow trademark owners to request seizure of
goods that violate their rights, according to Stan Abrams, an American lawyer
who teaches intellectual property law at Beijing's Central University of
Finance and Economics.
The rules were enacted partly in response to foreign
pressure for Beijing to stamp out rampant unlicensed copying of foreign movies,
music and designer clothes. Abrams said exports can be seized under rules meant
to prevent manufacturers in China from sending unlicensed copies to other
markets.
"All of these things that Proview can do, whether it's
going to court or Customs, these are the things that we want to see,"
Abrams said. "So it's definitely ironic."
Chinese news reports say Proview, which makes computer
displays, is deep in debt and needs a big settlement from Apple.
Proview has yet to make an offer to settle, said Xie, the
company's lawyer.
"We are now focusing our work on upholding rights and
haven't made negotiation proposals to Apple yet," he said. "As for
the reasons, you should ask Apple."
Shenzhen Proview Technology is a subsidiary of LCD screen
maker Proview International Holdings Ltd., headquartered in Hong Kong.
Apple bought rights to the iPad name in 2009 from a Taiwan
affiliate, Proview Taipei, that registered it in various countries as early as
2000.
A Chinese court ruled in December that Proview is not bound
by that agreement. It rejected Apple's complaint that Proview was violating its
rights.
Apple might be able to sue the Taiwan company on contract
grounds for selling name rights it didn't own, Abrams said. But he said a
victory in such a suit would not give Apple rights to the name on the mainland.
"This kind of thing happens, but it's a mistake and
it's a really bad one in this case," Abrams said. "They're paying for
it now."
