TMCnet Feature

As of 5:00 p.m. yesterday (February 12), Chinese authorities removed 45 iPad 2 units from retailers. Apple (News - Alert) lost a lawsuit challenging Proview's claim on the trademark late last year, and now the company  is continuing to press its infringement case against Apple.

 iSmashPhone reported that Apple is facing a potential $38 million fine from Chinese governmental authorities over alleged trademark infringement involving the "iPad" name.  Proview Technology, who claims to own the name, wants to sue Apple for $1.6 billion in a series of lawsuits. Proview is also said to be seeking an apology from Apple and an injunction preventing the company from using the iPad name in China.

Proview first accused Apple of trademark infringement in 2010, claiming that it had owned the mark in China since 2000 and is now seeking an $800 million settlement from Apple.  

Proview argued that the Chinese rights were not part of the deal because those rights were not controlled by the parent company. However, Apple believed that it had acquired the rights to the iPad trademark in China in a $55,000 deal with Proview's parent company that also included European rights. When Proview first filed it’s $1.6 billion suit against Apple, Apple lost when a court ruled that the Chinese rights had not been included in the purchase because the parent company did not hold the authority to sell them. Currently, Apple is appealing the ruling in favor of Proview, and any potential government fines or resolution to Proview's case against Apple are currently on hold while the case is resolved.

China's Administration of Industry and Commerce is removing any iPads found for sale after the verdict of the Apple's court case with Proview. It still remains unclear whether the actions are part of a nationwide effort or if local authorities are acting on their own initiative to address the issue.

However, according to reports, customers can still buy an iPad  even though the product may not be on the shelf.