Apple voluntarily pulls iPads from online Chinese stores
updated 09:20 am EST, Wed February 15, 2012
Pre-emptive move may put pressure on ProView
In a follow-up to developments reported earlier today, two top online shopping sites in China have removed the iPad from their web pages at Apple's request until a trademark battle between the iPad maker and Chinese company ProView is settled. While authorities have indicated that they are "unlikely" to ban sales of the iPad, ProView contends the tech giant does not have rights to use the name in China and has had some success at seizing iPads for sale there.
A complete ban on iPad import or export, as ProView is demanding, would amount to a global ban since the majority of iPads are made in Shenzen by Foxconn. ProView also wants a $1.6 billion payment for use of the name "iPad" in China. A district court in the country has held that ProView owns the rights to the name, but the company has fallen on hard times and is seen to be betting on the court case to save it from bankruptcy.
Both Amazon China and a Chinese site called Suning Tesco have removed references to the iPad from their webpages. The request from Apple is similar to its quick compliance with a court order in Germany that temporarily barred the sale of the iPhone and iPad over 3G patents there until the company was able to get the order reversed hours later.
Fresh-Faced Recruit
Joined: Feb 2006
iPad In China - Demand for Resolution
The popularity of the iPad and new challenges in getting one in China due to technicality, at best, in trade mark law, and efforts to ban iPads from local Chinese court will going to raise a major ruckus in China. The court's apparent redefinition of Apple's buying the trademark as invalid [in hindsight], and the attempt to extort a huge payment from Apple is going to raise a host of issues with Chinese consumers. Apple's compliance with court until appeal will actually put pressure on Chinese courts and Proview more than Apple to come to a reasonable accommodation.
However, I think the real harm has been done and Apple will be looking to move its manufacturing out of China to provide more diversity and not be at risk of some kind of export(?) ban being implemented. This is bad of Chinese economy and is purely self-inflicted. This will take time, I suspect the Brazil manufacturing facility "experiment" is going to get a lot of push to expand in Brazil and elsewhere.