Court rules against Proview in attempt to ban Apple iPad sales in Shanghai

Proview reportedly has filed around 40 suits against Apple in various local courts in China. That is why the decision by The Pudong District People’s Court not to grant the company an injunction against Apple is being considered as just a minor setback. Proview claims that they own the rights to the "iPad" name in the country and were seeking to block Apple from selling the tablet in Shanghai where the U.S. tech titan owns three stores. Thanks to the ruling, Apple can still offer its tablet at its stores for now. An attorney not involved in the case, Ren Wenfeng, a lawyer at Guo Ce Law Office, says the decision gives Apple some breathing room, "But it's not clear whether Apple will eventually win the trademark infringement case in China, as the crucial thing will be the ruling by the Guangdong higher court." That court is expected to make a ruling on the broader trademark dispute.

Apple iPad 2

Commenting on the decision, Proview attorney Xie Xianghui said, "We had requested an injunction that would force Apple to stop sales of the iPad on the grounds that they are infringing upon Proview’s trademark, but the court has rejected our request and decided that it will not hear the case." Proview is seeking $38 million for the rights to use the iPad name in China, much lower than the original claim for $1.5 billion. The $38 million seems like chump change for Apple, but the Cupertino based firm is probably fearful of a settlement which could open the door for anyone to make a legal run at Apple. Of course, Proview does feel that it has a legitimate legal leg to stand on after the People's Court of Shenzhen ruled that Proview's trademark for the "iPad" name is valid for the entire country. The original filing was made in 2000, years before an Apple iPad-like tablet was even just a gleam in Steve Jobs' eye.

There are reports of sporadic enforcement by Chinese police confiscating Apple iPads from local stores, but thus far Apple has managed to stave off a countrywide ban on sales. The decision made against Proview in Pudong District should help with that for the time being.

source: Yahoo via AllthingsD