Chinese firm seeks halt of iPad sales in Shanghai

By Samuel Shen and Royston Chan

February 22, 2012 2:56 AM EST

A Chinese technology firm sought to halt the sale of Apple Inc's iPads across the affluent city of Shanghai, arguing at a local court hearing on Wednesday that the U.S. firm had infringed on its trademark.

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Previous court rulings in favor of Proview Technology (Shenzhen) have covered specific retailers in smaller cities, but a Shanghai order, if imposed, would eat into one of Apple's biggest markets in China.

Proview lawyers argued, at times emotionally, that an immediate halt of iPad sales be implemented in China's commercial hub, which is the home to three of the country's five Apple stores.

Apple defended its right to use the trademark in China and said Proview had no ability to produce or sell its own device under the same name.

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"Proview has no product, no markets, no customers and no suppliers. It has nothing," Hu Jinnan, a partner at Guangdong Shendadi law firm, which is representing Apple in the case, told the court.

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"Apple has huge sales in China. Its fans line up to buy Apple products. The ban, if executed, would not only hurt Apple sales but it would also hurt China's national interest."

The Shanghai Pudong New Area People's Court has not said when it will issue its decision, but Roger Xie, a partner at Grandall Legal Group representing Proview, said it was likely to be soon. Apple would in any case have the option to appeal should it lose.

Highlighting the strong interest in the case, some 100 reporters gathered around the court building while the hearing was taking place. Some local residents took the opportunity of the media attention to voice their own grievances over local authorities, holding up banners in front of the assembled TV cameras.

SERIES OF COURT BATTLES

Proview says it owns the iPad trademark in China and a Shenzhen court ruled in its favor last December.

Apple disputes Proview's ownership of the trademark, saying it bought the rights to the name in China from Proview in 2009. The firm has appealed against the Shenzhen judgment, with a higher court hearing set for February 29 in China's southern province of Guangdong.

Following the Shenzhen case, Proview has launched a multi-pronged approach to get Apple's iPads off the shelves in the world's second-biggest economy, with mixed success.

Xie reiterated that Proview is open to settle the case out of court with Apple.

"Both sides have willingness to negotiate," Xie told reporters outside the court.

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