The iPhone 5 News Blog

While some political and financial analysts predict a trade war between the U.S. and China in the near future, it would appear that it has already begun, with Apple’s iPad in the Chinese government’s crosshairs.

Anyone who follows news about the iPhone and iPad know that legal and lawsuit battles between Cupertino and its competitors is well-documented. But while trademark and patent infringements have been fought exclusively in count rooms concerning devices like the iPad and iPhone, the Chinese government has brought to bear the might of their totalitarian grip over Chinese law and finance by recently confiscating shipments of iPads into China.

According to reports, China is disallowing iPad imports due to a copyright infringement battle heating up between Apple and a Chinese company called Proview Shenzen, which claims to have trademarked the “iPad” brand name years before Apple began using it.

It is true that Proview did hold the trademark for “iPad at one time, but an Apple spokesperson recent explained, “We bought Proview’s worldwide rights to the iPad trademark in 10 different countries several years ago,” and that “Proview refuses to honor their agreement with Apple in China.”

And it would appear that they have persuaded the Chinese government to throw their weight behind taking their side of the legal battle.

It still remains to be seen how far this situation could escalate. Ben Shapiro at BigPeace argues that this early move by China could be the first shot in an escalating trade war that could dramatically impact iPad prices and beyond: “With the Chinese government looking to gain any advantage it can against American companies in the technology sector (just take a look at their attempts to cheaply knock off other technologies), Apple would be a perfect start.  And if the Chinese government did ban import/export of the Apple product, it would significantly impact the price of the iPads in the United States, since all iPads are assembled in China.”

At present, there is no formal ban on Apple imports or exports, and all reports indicate that other Apple products continue to be allowed into mainland China for resale.

Rising Tensions Between Apple and China Could Affect iPad 3, iPhone 5 Production

As Mr. Shapiro reminds us in his own article, iPads ironically are assembled in China. And while it has not been reported that the current impasse between Apple and Proview will lead to a situation where production will be affected, it is not hard to imagine how an escalation could lead to unintended consequences, wherein iPad 3 and iPhone 5 could be halted.

If this story continues to develop, it is not impossible to imagine that the iPad 3 and iPhone 5 release dates could be moved back in 2012. And if assembly has to be moved out of mainland China, the price tag on both devices could also escalate.

By Michael Nace

Michael Nace

Michael Nace is the Publisher of the iPhone 5 News Blog and iPhone 6 News Blog. He has published articles about the iPhone since 2010.

     

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