China court rejected its claim to own the iPad trademark

The court said on its website that it dismissed a lawsuit Monday by Apple (AAPL) against Shenzhen Proview Technology over the ownership of the iPad trademark.--Proview in Taiwan had registered the trademark in various countries as early as 2000, while Proview in Shenzhen registered the trademark in China in 2001. According to the Shenzhen court decision, Apple says its trademark transfer agreement with Proview's Taiwanese company should also apply to the Shenzhen company, but the court rejected that, saying that the Shenzhen company was not involved in those negotiations.

Apple could face disruption to its iPad sales in China after a court rejected its claim to own the iPad trademark in the country and a rival sought to halt sales of the tablet device in two Chinese cities. The developments are the latest in a long-running dispute between Apple and Proview Technology (Shenzhen), a struggling Taiwanese-owned company that registered trademarks for the name IPAD in many countries long before Apple conceived its smash hit tablet computer. In 2006, Proview Electronics (Taiwan) agreed to sell Apple the “global trademark” for the IPAD name for £35,000, according to Proview, but the two companies have subsequently disagreed about whether that deal included China.

The Chinese trademark office rejected the application because the trademarks are owned by Proview Technology (Shenzhen), another affiliate of Proview International, the group’s Hong Kong-listed holding company, and not the Taiwan unit. Apple then sued Proview Technology (Shenzhen), asking the court to declare the US company the rightful owner of the IPAD trademarks in China. The Shenzhen Intermediate People’s Court rejected that request earlier this week in a ruling that Apple can appeal. At the same time, Proview Technology (Shenzhen) has sued Apple resellers in the southern Chinese cities of Shenzhen and Huizhou, seeking an immediate block on sales of iPads. Apple declined to comment.