Fears of iPad shortage as Chinese firm which owns trademark tries to block exports

Proview Technology (Shenzen) seeks ban on export of iPads in ongoing trademark row
Move could affect sales as stocks dry up worldwide
Chinese company won legal ruling last year which states it has iPad trademark
Authorities in some Chinese cities order retailers to stop selling iPads over row
Apple could be forced to settle with company, appeal to higher court or face damaging enforcement action in China


A Chinese technology firm that claims it owns the iPad trademark is planning on seeking a ban on exports of Apple's computer tablets from China, a lawyer for the company has said.

If successful, the move could deal a blow to the U.S. tech giant's iPad sales worldwide.

Not only is China a huge consumer market, but it is a major production base for the U.S. company's products including the iPad, iPhone and iPod.

The Chinese firm Proview Technology (Shenzen) Co Ltd is petitioning Chinese customs to stop shipments of the popular tablet computers in and out of China, although customs have not yet responded to the request.

The legal row with Proview Technology is the latest headache for Apple in a booming market.


Last year, Apple lost a case against the same company in Shenzen when a court agreed that Proview owned the iPad trademark.

It has appealed that decision and a final hearing is due to start in Guangdong High Court on February 29. That court's decision will be final under the Chinese legal process.

It comes a day after reports claimed that authorities in some Chinese cities had ordered retailers to stop selling iPads due to the dispute.

Apple claims it had bought the worldwide rights to the trademark long ago.


A spokesman said: 'We bought Proview's worldwide rights to the iPad trademark in ten different countries several years ago.

'Proview refuses to honour their agreement with Apple in China and a Hong Kong court has sided with Apple in this matter.'

Proview Technology has asked authorities in around 20 cities, including Shijiazhuang near Beijing, to stop retailers selling iPads and has also filed lawsuits against Apple in Shanghai, Shenzhen, Futian and Huizhou.

Apple could be limited to either settling with the company, appealing to a higher court or facing devastating enforcement action in China, legal experts have said.

Elliot Papageorgiou, of law firm Rouse Legal (China), said: 'There are two views we can take here. One view is, Apple was not sufficiently prudent and therefore, this was missed by Apple and its attorneys.

'A more charitable view would be that Apple said that for business reasons we need to use this brand and as far as the name in China is concerned, let's cross the bridge when we come to it.'

Proview lawyer Xie, of Grandall Law Firm, said Apple was not currently in negotiations with the Chinese company.

It is believed to be seeking up to $1.6billion in compensation from Apple for trademark infringement.

Stan Abrams, an intellectual property law professor at Beijing's Central University of Finance and Economics, said: 'Without a win in that Shenzhen case, all the other actions, whether it is administrative or with different courts, customs, Apple is not in a good position at all.'



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