Thursday, March 1, 2012

iPad Versus IPAD Continues: China’s Higher Court Hears Apple's Appeal

by Holly Shoemaker

On Wednesday, Feb. 29, 2012, the higher People’s Court of Guangzhou heard Apple’s appeal regarding the iPad trademark in mainland China. A lower court had previously ruled in Proview Technology’s favor last December.

Summary of Arguments
  • Apple argued if Proview wins the case, it would “confuse consumers and hurt their interests” as the name iPad is associated with Apple, not Proview.
  • Proview defended its case and argued that its company employees did not accurately represent the company in negotiations for the trademark. One of Preview's subsidiaries negotiated the sale.

The court did ask the companies if they wished to settle their dispute. Apple and Proview said they would consult their clients. The court did not set a new date or release when the companies should expect a ruling. A ruling could take a couple of weeks to months.

Under Chinese law, the higher court’s verdict is typically final. If Apple loses this round, it could appeal to the Supreme People’s Court for a retrial. However, that remains an unlikely outcome. Analysts say if the case continues without resolution from the higher court, the companies may settle. That would certainly help Proview Technology, a company deep in debt.

Concluding Thoughts

I agree with Apple that the decision affects more than just two companies. China produces many components for iPads and other products. Consumers in China will also be affected as they clearly show an interest in the product. If the higher court rules in favor of Proview, assuming the companies do not settle, people may no longer have jobs either as Apple has large production facilities in China. That has the ability to affect iPad sales in general. If no one produces the needed parts, consumers do not have the same access to a final product.

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