Pressure on Apple in China
Impending cessation of sales of Apple’s iPad in China?
The Hongkong based monitor manufacturer Proview Technologie threatens Apple with an impending cessation of sales of Apple’s iPad in China. Background of the threatening gesture is that the court of Shenzhen, China, approved Proview’s earlier trademark rights on the term “iPad” in December last year.
Proview registered the trademark “iPad” in 2000. Proview’s Taiwanese affiliate assigned the trademark rights of the term “iPad” to Apple for a lump sum of $ 54,000. Proview’s headquarters are of the opinion the contract does not include the trademark rights in China which still belong to Proview’s headquarter in Hongkong.
According to a report of the German Spiegel Online Proview has begun to enforce its trademark rights and ordered the local authorities to seize Apple’s iPads in shops in the city of Shijiazhuang. According to Proview’s attorneys 20 more cities will follow. However, Proview signalized to settle the case amicably, demanding a penalty of 1.2 billion Euros for trademark infringement.
Apart from the contractual details, the decision may be right strictly considering the applicable Chinese trademark law. But what would the decision mean for the consumer, if the trademark “iPad” is connected with Apple all over the world, except in China?