updated 11:20 am EST, Tue February 7, 2012
Apology, iPad embargo among demands
A lawyer for Proview Shenzhen, Xie Xianghui, is claiming that a court in the Xicheng district of Beijing is prepared to "slap Apple with a 240 million yuan ($38 million) fine," according to the Global Times. The Xicheng district administration, though, is refusing to comment. "It is still under investigation, so no official comments on the case can be made yet," a media officer with the administration states. The China Daily meanwhile quotes Xie as also demanding an apology, and an injunction against the sale and marketing of iPads in China.
At the core of the dispute is a 2006 agreement in which Apple bought the iPad trademark from Taiwan's Proview Electronics for $55,000, by way of a front business known as IP Application Development. Proview says, though, that Apple didn't win the rights to the Chinese trademark, since those were owned by Proview Technology in Shenzhen, a subsidiary of the Hong Kong-based Proview International.
Last year a trademark infringement lawsuit was filed against Apple, seeking 10 billion yuan in damages, or about $1.6 billion. Apple tried to countersue, claiming it did have ownership of the trademark, but the courts ruled in Proview's favor. Since then Apple has decided to appeal the case.
Another Proview lawyer, Xiao Caiyuan, argues that Apple will likely lose the appeal, and that Proview has "prepared well for a long-term legal battle." The company is thought to be financial trouble though, and may need money from Apple to help pay off debts.