Wednesday 15 February 2012

Apple could face a ban on iPad sales in China

Apple's iPad 3 became a target in an ongoing trademark dispute in China, after a small Chinese company filed for a customs ban with local authorities to stop the import and export of the tablet.

If request succeeds, it could affect Apple’s global sales as China is a major manufacturing base for the company as well as its fastest-growing market. Local media reported that in Shijiazhuang, one of the cities in mainland China, iPads have already been seized. However, the ban is unlikely to affect the export as Apple has the right to manufacture its products in China and it owns the iPad trademark in other countries. 






The request with the country's custom offices follows a long-running dispute between Apple and display vendor Proview over ownership of the iPad name. Last year Proview won an initial judgement in Shenzhen court, which Apple has appealed against. The firm claims it bought Proview’s worldwide rights to the iPad trademark in ten countries but the Chinese firm refused to honour the agreement. Apple bought rights to the name from Proview Taipei, a Taiwan company affiliated with Proview, but the mainland company claims it still owns the name in China. Hong Kong court made a decision in favour of Apple but the case is still pending in mainland China.

Ma Dongxiao, a lawyer for Proview, announced that company’s goal is to ban Apple’s next version of the iPad, expected to be released in March. The firm, which has filed for bankruptcy, is pressuring Apple to buy the iPad trademark but it is believed that the sum it is asking for is too high.

The lack of settlement could create a major problem for Apple as it would have major damages to pay for the past as well as future iPad sales. 



No comments:

Post a Comment