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Tuesday, 21 February 2012 - Apple's China trademark battle moves to Shanghai |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Summits Business Video The Freeland File Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Issues 2012 Candidates 2012 Tales from the Trail Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Bernd Debusmann Nader Mousavizadeh Lucy P. 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Proview Technology (Shenzhen) claims it owns the iPad trademark in China and a Shenzhen court ruled in its favor last December. Proview has since launched a multi-pronged approach to get Apple's iPads off the shelves -- with mixed success. Apple's iPad has a huge lead over rival tablet PCs in China with a 76 percent share. But it's not only the consumer market in China that is important for Apple because the country is also a major production base for the iPad and other Apple products. Indeed, Proview Technology (Shenzhen) has already petitioned Chinese customs to stop shipments of the iPad in and out of China, although authorities have indicated such a ban would be difficult to impose. Previous court rulings have covered specific retailers in smaller cities, but a Shanghai order, if imposed, would eat into one of Apple's biggest markets in China, which is home to three of its five flagship stores in China. "This is a court in Shanghai which means that it has jurisdiction, and its order should be observed in Shanghai, which is one of the biggest cities and biggest markets for Apple iPads in China," said Kenny Wong, head of Mayer Brown's intellectual property practice in Hong Kong. Proview is hoping that the district court will rule in its favor and grant an injunction to stop the sale of iPads in Shanghai, Proview's lawyer Roger Xie told Asian Legal Business, a Thomson Reuters publication, on Tuesday. Lawyers said the judgment is not expected for a few months and that Apple would in any case have the option to appeal should it lose. Apple disputes Proview's ownership of the trademark, saying it bought the trademark from Proview in 2009. The firm has appealed the Shenzhen judgment with a higher court hearing set for Feb 29 in China's southern province of Guangdong. Apple's Shanghai unit is the defendant in the case due to be heard on Wednesday. Losing could mean the city's three Apple retail stores would have to stop selling the popular tablet PCs. Apple has two other flagship stores in China, both in Beijing. Over the past week, Proview's efforts have borne fruit as local media reported that certain cities have started enforcing Proview's request to remove the iPads. Proview's lawyers said on Friday it had won a lawsuit in the southern city of Huizhou against a retailer selling Apple's iPads, not boding well for its case in Shanghai. "The Proview people probably remain fairly confident, in view of their success in Guangdong province already," Wong said of the Shanghai hearing on Wednesday. CONTRASTING FORTUNES The fortunes of Proview parent, Hong Kong-listed Proview International Holdings Ltd, stand in stark contrast to Apple's. Founded by Yang Long-san in 1989, Proview was the first Taiwanese technology company to list in Hong Kong and by the end of the 1990s numbered itself among the top five computer monitor makers. In 1999 it partnered with U.S. chip maker National Semiconductor to launch the I-PAD, a stripped-down desktop computer whose main selling points were its Internet connectivity and ease of use. Proview continued to grow, shifting from computer monitors to become the world's third-largest OEM manufacturer of flat panel TVs. But by August 2009, when Apple began trademark talks through a proxy, Proview had been badly hammered by the financial crisis. Since then things have only gotten worse. Trading of its stock was suspended in Hong Kong in August 2010 after creditors in China went to court to recover assets. The company faces delisting in June if it cannot provide the Hong Kong Stock Exchange with a viable rescue plan. On Monday, Apple fired its own shot back at Proview, threatening to sue "individuals and entities" for damages that may arise from defamatory remarks that hurt Apple's reputation. In a letter addressed to Yang, who remains chairman of the China subsidiary, and posted online by IDG News Service, Apple warned Yang against giving false information to the media and public (here). Reuters has confirmed its authenticity. "It is inappropriate to release information contrary to the facts to the media, especially when such disclosures have the effect of wrongly causing damage to Apple's reputation. You will be held legally responsible for such activity," Apple said. Calls to Proview went unanswered and Apple declined to provide fresh comment. (Additional reporting by Artemisia Ng with Asian Legal Business in HONG KONG; Chyenyee Lee in HONG KONG; Editing by Jeremy Wagstaff in SINGAPORE) Tech Media iPad Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (3) pdxuser wrote:   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Advertise With Us Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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