China higher court hears Apple's iPad appeal

Lawyers for Apple Inc. argued for its right to use the iPad trademark in China on Wednesday, as a higher court began a crucial hearing that could result in sales of the wildly popular tablet computer being halted throughout the Chinese mainland.   

The Higher People's Court of Guangzhou is hearing an appeal by the U.S. firm after a lower court ruled in favour of debt-laden Chinese tech company Proview Technology (Shenzhen), which says it owns the trademark in China.   

"The value of iPad's trademark rocketed after Apple launched the tablet computer in January 2010," a lawyer for Apple told the court. "In the eyes of the consumer, iPad is associated with Apple. If the court decides that Proview wins the case, then this will confuse consumers and hurt their interests."   

The verdict of the higher court -- which is not expected immediately -- is usually final under Chinese law, and will set a precedent for other cases in lower courts around China.   

"Theoretically, there is still a final 'appeal' to the Supreme People's Court to apply for a retrial but the success rate of such applications is extremely low," said Kenny Wong, a partner and head of the intellectual property practice at law firm Mayer Brown JSM in Hong Kong.   

"If Apple lost before the Guangdong court they will either have to reach a settlement with Proview Shenzhen regarding the rights in the iPad marks or change the name of their tablet to something not similar to iPad."   

A week ago, a Shanghai court rejected a request by Proview Technology (Shenzhen), a subsidiary of near-bankrupt Hong Kong-listed Proview International Holdings Ltd, to block Apple from selling iPads in China's richest city, saying that it would depend on the ruling of the Guangzhou high court.   

The case moved to the high court after the Intermediate People's Court in Shenzhen rejected Apple's complaint against Proview Technology over the infringement case. Guangzhou and Shenzhen are in the booming southern province of Guangdong.   

The legal tussle has crimped some sales of the iPad and also spread to the United States, where Proview International Holdings Ltd's Taiwan subsidiary has brought a lawsuit accusing the world's most valuable technology company of using deception to acquire the iPad trademark.   

Reuters