Apple loses iPad copyright battle in China; may face outsourcing ban

BEIJING: A move is afoot to block the worldwide distribution of iPads from their manufacturing base in China after its maker, Apple Inc, lost a copyright battle to a Chinese company. The winning company, Proview, said it plans to ask Chinese customs to disallow shipments of iPad.

The timing of the move is most significant because Chinese vice president Xi Jinping is in Washington, discussing several trade and political disputes between China and the United States.

The US-based Apple outsources nearly half of its products like iPhone, Macbook and iPad from factories based in China.

Reports in the Chinese media said that several stores across the country had removed iPads from their shelves as Apple had lost its claim over the iPad brand to the Chinese firm, Proview, in a local court. But this correspondent found Apple stores in Beijing displaying and selling iPads on Tuesday.

"We are now working on a request to China customs to ban the imports and exports of the iPads that have violated the trademark." Proview lawyer Xie Xianghui was quoted as saying in the media.

Apple said in a statement that it had bought the iPad trademark in 10 different countries from Proview. "But Proview has refused to honour its agreement in China and a Hong Kong court has sided with the Chinese company," Apple said. "Our case is still pending in Mainland China," it said.

The latest move is expected to affect Apple's likely launch of a new version, iPad3. Though Apple has not confirmed it, several media reports have suggested that Apple will launch the new version in March.