Apple, the maker of iPhone and iPad, suffered a setback in China as a court rejected a lawsuit filed by Apple against a local company for alleged infringement of its 'iPad' trademark. Apple may have to sell the product under a new name in China or cough up $1.6 billion.
The verdict effectively forces Apple to purchase the trademark from the Chinese tech company.
The Municipal Intermediate People's Court in Shenzhen, a southern Chinese city neighboring Hong Kong, earlier this week rejected a lawsuit by Apple accusing Proview Technology (Shenzhen) of infringing on its 'iPad' trademark.
Proview Technology (Shenzhen) is a subsidiary of Hong Kong-headquartered Proview International Holdings Limited, which also has a branch in Taipei.
Proview Taipei registered the 'iPad' trademark in a number of countries and regions as early as 2000 and Proview Shenzhen registered the trademark on the Chinese mainland in 2001, long before Apple launched its iPad tablet.
Apple bought the rights to use the trademark from Proview Taipei in 2009 with a payment of 35,000 pounds ($54,616).
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