Unboxing Asia

Hana Stewart Smith

Apple loses ‘iPad’ trademark in China

By | December 6, 2011, 12:28pm PST

Summary: A Chinese court has ruled against Apple in an ongoing legal battle over the ‘iPad’ trademark, which could lead to Apple marketing the highly coveted product under a new name.

Apple prides itself on its brand value. But in China, the technology giant may be forced to sell their iPad tablets under a new moniker.

The world’s largest technology company lost an ongoing court battle to use their iPad trademark, after claiming that a Chinese company was infringing on the name with their own product.

The patent court in Shenzen, China ruled in favour of Proview Technology, who had previously trademarked the name ‘iPad’ in 2000.

Proview sued Apple for 10 billion yuan ($1.6 billion) in October for copyright infringement; likely spurred by its 400 million yuan ($64 million) debt.

Apple had purchased rights to the trademark from Proview’s global parent company last year. But the Chinese judiciary clearly did not share the same sentiments.

It has been suggested that Chinese patent law is deliberately designed to favour Chinese based companies, in efforts to protect Chinese intellectual property. This has resulted in Chinese versions of Western brands being protected by patent law, such as Weibo in place of Twitter, and Baidu in place of Google.

China is currently the world’s largest smartphone market, after overtaking the U.S. earlier this year.

For Apple, not being able to use one of its universally synonymous brand names will be an unfortunate blow to the company.

Apple did not comment on the ruling.

One question Apple faces is whether it will buy the rights from Proview once more? Or, if the case is upheld, will Apple choose to market the iPad under a different name?

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Hana is three things -- small, British, and stranded in Tokyo.

Disclosure

Hana Stewart-Smith

Hana Stewart-Smith's mother is presently employed by IBM UK. No other existing or potential conflicts to report; this information will be updated whenever deemed necessary.

Biography

Hana Stewart-Smith

Hana is three things -- small, British, and stranded in Tokyo. After recognising that a degree in both English Literature and Film is, in fact, two parts unnecessary and useless, Hana decided that a change in pace was in order. With a lifelong passion for writing and a healthy fear/ fascination with technology, the next logical step was to move to Japan and surround herself with terrifying tech and a complete absence of the English language. She'll let you know how that venture works out.

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RE: Apple loses 'iPad' trademark in China
Joel-r 16th Feb
@toddybottom you might want to check the facts. Oh wait you???re a card carrying iHater. I am actually surprised that your IP address hasn???t been banned. You do not add anything of substance, you just spew hate.
You are the same type of fool that cheers when Microsoft sues Samsung, simply for using Android, while railing against Apple for suing Samsung for copying product design, (including the packaging), to a point that at less than 10 feet the Samsung lawyers could not tell the two apart.
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"But the Chinese judiciary clearly did not share the same sentiments."

Of course Apple's sentiments are that it was in the right. But Apple wasn't in the right. They clearly broke the law. I know this to be true because the judge stated it to be true. Apple's beliefs are completely irrelevant here.
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The term Chinese judiciary is an oxymoron.
ItsTheBottomLine Updated - 6th Dec
@toddybottom

Clearly with China's history I can't believe the even have a term for judiciary.
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RE: Apple loses 'iPad' trademark in China
global.philosopher 6th Dec
@ItsTheBottomLine Plus we are talking about a regieme that thinks it is acceptable to run over peaceful student deomnstrators with tanks, invade and occupy Tibet, choose and promote the next Dalai Lama (which was ignored by the Tibetans) and allow industries like bear bile harvesting and importation of endangered animals parts (rhino horn, tiger whiskers, etc).

Other than that the Chinese are great (they have so much cheap labour!).
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Of course, they do
John L. Ries 6th Dec
@ItsTheBottomLine
It's just that the judges are elected by and serve at the pleasure of "people's congresses" that are under the complete control of the Communist Party and have a history of acting accordingly.
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RE: Apple loses 'iPad' trademark in China
tonymcs@... Updated - 6th Dec
@ItsTheBottomLine

These assumptions about China are really about glass houses and who wants to throw the first stone.

Yes students were run over in that famous square (4 dead in Ohio) and yes China has removed the male religious dictatorship from Tibet, but the US killed over 100,000 Iraquis based on a lie of WMDs and that wasn't the only evil you can put at the feet of the good old USA.

The fact is, China is a civil society with just as many warts as the USA that does have laws and judiciary and you may have noticed that the Chinese company did copyright the name in 2000 and Apple only managed to redress that last year - if at all.

You are also talking about your landlords and the holder of most of your debt.
@global.philosopher
And how far do you think we are from doing the same to our student occupy protesters on campuses? Yesterday it was acceptable to pepper spray and use rubber bullets and sound bombs, tomorrow.....
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I'm impressed
John L. Ries Updated - 6th Dec
@toddybottom
You've studied the case in enough detail to determine that the decision is correct. No doubt you read the trial records, the court's actual ruling and the relevant law on the subject. My question is, were all of these materials translated into English, or do you read Chinese?

Reply to the reply:

I generally refrain from commenting on court decisions unless I know something about the law and facts of the case. Since you haven't actually studied the matter in any detail, you don't know whether the decision is correct any more than I do and it would behoove you to act accordingly (with closed mouth and silent keyboard).

It turns out that given the manner that Chinese judges are chosen and retained (as described above), I've long suspected that they pay more attention to Communist party directives than to written law (true in all Communist states). Thus the conclusion I draw from this case is that Apple's standing with the local authorities isn't all that high at the moment.

Reply to tonymcs:

Yes, judges are appointed for political reasons in the U.S., but federal judges are appointed for life and state judges are either appointed/elected for life or for fixed terms. Combine that with the fact party leaders here don't have nearly as much power as do Communist Party leaders in China, and we end up with a judiciary far more independent than any in what remains of the Communist world. Our system is definitely flawed, but judges here, as a rule, don't take orders from politicians (often to the annoyance of the politicians). Chinese judges have a long history of doing just that (which is why acquittals are almost unheard of in criminal cases).

Judges in mainland China are effectively appointed by the Communist Party, serve at its pleasure, and reportedly follow party line very closely if they want to keep their jobs (and maybe their lives and freedom as well).
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Interesting
toddybottom 6th Dec
@John L. Ries
Why wouldn't the decision be correct? A judge made the decision. A judge trained in the laws of the region. That is the only standard of proof anyone needs when stating that MS acted anti-competitively.
  • Flagged
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@John L. Ries, you are right the Judges don't take orders from their political leader. They do however take direct governance from the Queen (Liz ii). Even in the great old USA the BAR has a figurehead and leader in the UK's Queen.

Anyway this is about Apple and how they are getting a slap for doing what they do in western courts. Also if you own the name then it is yours, just remember a little recording company by a band called The Beatles? Apple deserve and need this kind of legal result.
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@toddybottom And the tank driver should have run over the little guy with his shopping...

Oh please. Legal opinion varies depending upon interpretation of judgements - even when both sides are operating in the same jurisdiction.

But if it's a strait choice between China - the country enslaving Tibet and bombarding the west with millions of cyber attacks per hour, and the evil evil nasty horrid walled garden that is Apple, by all means let China win!

If you love the Chinese decision so much, try committing a minor infringement in China and see what happens.
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@toddybottom Sort of the same way that the Apple patents about the tablet form and shape are valid, although this form and shape has been around since the era of chalk tablets. But that's not "prior art" because Apple says so.
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Corrupt Chineese courts
Mister Spock 6th Dec
Apple had purchased rights to the trademark from Proview???s global parent company last year, yet the courts allow Proview Technology to keep the name?

An imaginative way to steal money, indeed: sell the rights to something, have the courts disallow it, but allow the Chineese company to keep the money.

plain
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One of the risks of doing business with the Chinese
Snooki_smoosh_smoosh Updated - 6th Dec
@Mister Spock... They love our businesses and products, but they also like to steal those IP's as well to counterfeit them.
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@Snooki_smoosh_smoosh
It was proven in a court of law. Apple is the one stealing Chinese IP. Don't blame the victim.
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@Snooki_smoosh_smoosh
I agree.
(Note: You used the word "also", so your "as well" serves no purpose. And, your apostrophe isn't necessary to make IP plural.)
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@toddybottom,
"It was proven in a court of law" I'm not sure you can call anything in China fair. A court of law in China has to be laughable, and probably damn scary if you are there. Based on Ex pats, you do NOT want to get arrested for even traffic offense there, especially being a Westerner... you can defend them all you want but I sure wouldn't.
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BottomLine: Interesting
toddybottom 6th Dec
So when Apple loses a court case, it is because the court system is corrupt and unfair. Yet when a certain other company loses a court case, all the ZDNet talkbackers use that loss as proof that the company is guilty of all sorts of heinous crimes.

Apple was caught stealing the IP of another company. They were tried in a court of law and they were found guilty. Convicted. It doesn't get any more fair than that.
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RE: Apple loses 'iPad' trademark in China
Pete "athynz" Athens 6th Dec
@toddybottom This is a sick market. We all lose.
@Snooki_smoosh_smoosh
Apple had purchased rights to the trademark from Proview???s global parent company last year

Just because a court said otherwise does not indicate the court is acting honestly.

Look at the people who are being released from prison as it is being discovered that those people where wrongly accussed and imprisoned.

plain
@Mister Spock the EU showed how badly corrupt it's appointed, make 'em up as you go, lawmaking body is many times over when they demonstrate the EU IT revenue strategy of fining every successful American company for "monopolizing" markets that never existed in the EU and had no bearing on the state of EU IT. Which OS makers were being wronged again here? MS isn't a services based company, so that market was never threatened.
The Chinese company had the name first. It's just sour grapes for Apple that they can't buy or bully everyone in the world.
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RE: Apple loses 'iPad' trademark in China
StandardPerson Updated - 6th Dec
@xuniL_z
"The Chinese company had the name first. It's just sour grapes for Apple that they can't buy or bully everyone in the world."

Are you being serious?
i) Proview trademarked the name "I-Pad."
ii) Proview chose to "sell the global trademark to IPAD to US-registered group IP Application Development for the sum of $55,104 in 2006."
iii) Apple "..bought the IPAD name from IP Application Development" in early 2010. That is, Apple bought the global trademark rights for I-PAD in early 2010.
iv) Now Proview have claimed that "global trademarks" don't include China and want $1.6 billion from Apple.

As you wrote, Proview did have the "I-Pad" name first; But surely the fact that Apple paid Proview for their global trademark means something.

(I gather that in trademark law, "I-Pad" and "iPad" are considered to be essentially identical. That seems strange to me.)

P.S. All the quotations above come from the article referred to in the main article.
StandardPerson, you claim that MS, among others, are IT criminals.
Let's take Microsoft, I've never heard of them facing criminal charges in a criminal case, can you elaborate?
They did lose a civil case, but that is highly debatable in my mind and has politics and sour grapes by an industry that has rode the coattails of MS to success. Apple would not be successful w/o Windows. There would be no itunes for Windows, thus the ipod would have never taken off in any appreciable numbers. Same with Google, w/o Windows they would not be the giant they are today. MS never stopped Apple from selling computers, Apple did by pricing them at 5000.00....in the 1980s. They always targeted the niche crowd of elitists until the ipod, which cleverly was sold, again, on the back of Microsoft.
Now please tell me about the criminal cases.....
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RE: Apple loses 'iPad' trademark in China
Pete "athynz" Athens 6th Dec
@Mister Spock Indeed. I trust Apple will sue Proview Technology Global to get the money they spent in good faith back if PTG does not return the money on their own.
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@Mister Spock Thank you Mr Spock, I was waiting for someone to respond to that comment. It was the first thing mention. Some how that court decided it didn't actually matter, another easy way to get US dollars. Oh well, its only 1.6B, that leaves Apple with what, about $75B cash reserves
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@Mister Spock ... The whole point of purchasing the rights to the iPad name would have (presumably) been to prevent a legal fight. And, as for those who mention that Apple only licensed it last year ... odds are good that Apple started the process much earlier, but it most likely took some time to negotiate.

In any event, I wish I could sell something to someone yet still retain the right to be the sole user of it. Obviously selling (or at least licensing) the rights to a brand name in China works very differently than in the rest of the civilized world.

Problem for Apple is: they probably don't have much recourse here, since it sounds like Chinese courts don't often turn-over judgments. But perhaps they can just call it the "Apple iPad" instead of just "iPad", or do like they have with the "(Apple logo)TV" and call it "(Apple logo)iPad" ... ?
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I think Obama should apologize to the Chinese.
"One question Apple faces is whether it will buy the rights from Proview once more?"

A more relevant question is whether they are entitled to their money back. Apparently the company they bought from sold them (intellectual) property it didn't own. In law that's called an "illusory contract"--one side gives up "consideration" (something with legally recognized value) and in exchange it receives something that purportedly is consideration of equal value but that in fact is worthless.

Of course, there is also the question of whether the seller committed fraud by claiming to sell something it didn't actually own. However, (at least under most Anglo-American and EU law), fraud generally requires a false statement made with intent that the victim will rely on it as being true and in fact the victim relies on it. Since Apple presumably had its own attorneys examine everything and state that in their legal opinion the company owned the name, it would be pretty hard to show "reliance".
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RE: Apple loses 'iPad' trademark in China
global.philosopher 6th Dec
@Rick_R As soon as the deal was made the owners closed the Van doors and disappeared down a side street. That is the way of doing business in China.
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I Love It !!!
wizardb@... 6th Dec
Apple finally hoisted on it on petard,in the country where there crap is made with what is basically slave labor I thin it is very fitting that a company that owns the name isn't bending to the Church of Jobs cult.
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I agree
toddybottom 6th Dec
@wizardb@...
I think this is a great day. I also look forward to Apple having to pay billions in fines for their anti-competitive practices in the ebook market.
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RE: Apple loses 'iPad' trademark in China
Pete "athynz" Athens 6th Dec
@toddybottom This is a sick market. We all lose.
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RE: Apple loses 'iPad' trademark in China
StandardPerson Updated - 6th Dec
@wizardb@...

"Apple finally hoisted on it on petard,in the country where there crap is made" or

"Apple [has] finally [been] hoisted on [its] [own] petard, in the country where [their] crap is made.."

What company makes equipment that you do not consider to be "crap"?
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couldn't have happened to a more deserving company. die Apple.
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RE: Apple loses 'iPad' trademark in China
global.philosopher 6th Dec
@tatiGmail But who would you choose to hate next? Someone must be in your sights!
Perhaps one of the most poorly written stories published in the last month at least. It is impossible to know what happened and who was at fault. Except the author (or maybe the press release she copied from) was at serious fault.
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Apple was at fault
toddybottom 6th Dec
@bdbayer
Apple's lawyers had their day in court.

Apple was found to be guilty. Convicted.

Apple was at fault. There is no ambiguity here. We can know for sure that Apple was at fault because they were convicted in a court of law.
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@toddybottom

Read the poorly written piece again, your facts are not straight. They purchased the name from the parent company, which inferrs that they OWNED the name.

The court was not correct in it's findings, unless the twit responsible for this article left out relevant information.
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@toddybottom Apple has been suing everyone and has been the 800 lb bully and has been winning. Glad to see them lose a few in other countries.
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RE: Apple loses 'iPad' trademark in China
Pete "athynz" Athens 6th Dec
@toddybottom This is a sick market. We all lose.
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@ExEC135CrewDog You seem somehow surprised that toddybottom has his facts straight but history shows that when it comes to Apple facts are a complete mystery to him.
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Steve would quit selling iPads in China altogether. OH STEVE, WE MISS YOU :o)
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Chinese courts are just as much of a knock-off as everything else China copies.
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So are US and EU courts
toddybottom Updated - 6th Dec
@Playdrv4me
I guess that means that every company that has been convicted of stealing IP and of anti-trust behavior in those courts were actually innocent and got a raw deal.
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@toddybottom

Now you get it.
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RE: Apple loses 'iPad' trademark in China
Pete "athynz" Athens 6th Dec
@toddybottom This is a sick market. We all lose.
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RE: Apple loses 'iPad' trademark in China
global.philosopher 6th Dec
I was just wondering....what exactly is the 10 billion Yuan they are seeking for. I assume they are seeking damages...but damages for what. What exactly is their product that they are selling that supposedly cost them 10 billion yuan in lost sales?

Just for your easy reading a bit of reading of more crediable news sites shows that Apple purchased the Eauropean rights from Proview but the courts agreed with Proview's argument that that did not include the Chinese subsidiary. Knowing Apple and knowing they would be selling in China I bet that Chinese trademark would have been included in the deal so I suspect this case will be appealed by Apple or there will be a undisclosed settlement very quickly.
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I would like to see Apple stop building their products in China. Made in the USA would be much better for our economy. Even Mexico would be far superior to China. Americans are doing themselves a disservice when buying Chinese made stuff -- we send way too much money over there.
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Name one, please.
pfyearwood 6th Dec
@cdporterfield name one brand of tablet that is made in the USA.
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RE: Apple loses 'iPad' trademark in China
use_what_works_4_U 7th Dec
@cdporterfield
Not to toot my own horn, but this is from a post I made recently on another iPad related story where someone was complaining about where Apple contracts their manufacturing:
Will you say the same for:
Dell
HP
Amazon
Barnes and Noble
Intel
Cisco
Microsoft
Motorola
Vizio
etc...
The companies in this list are all U.S. companies manufacturing through Foxconn, the same contractor Apple uses. The list of total clients for Foxconn is huge, international, and includes most companies that design and sell products with Integrated Circuit Baords.

Or are you just railing against Apple because you have some issue with them?
http://en.wikipedia.org/wiki/Foxconn

http://www.zdnet.com/tb/1-110041?tag=talkback-river;1_110041_2243562#1_110041_2243562
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I will not buy anything from China again.
@toddybottom you might want to check the facts. Oh wait you???re a card carrying iHater. I am actually surprised that your IP address hasn???t been banned. You do not add anything of substance, you just spew hate.
You are the same type of fool that cheers when Microsoft sues Samsung, simply for using Android, while railing against Apple for suing Samsung for copying product design, (including the packaging), to a point that at less than 10 feet the Samsung lawyers could not tell the two apart.

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