Apple no longer has the exclusive rights to the "iPhone" trademark in China after the Beijing Municipal High People’s Court ruled in favor of leather goods manufacturer Xintong Tiandi Technology earlier in March. As reported by Legal Daily [Google Translate], the decision will let the Beijing company continue to sell leather bags and cases with the brand name "IPHONE" on each cover without fear of legal blowback from Apple (via Quartz).

The Cupertino company filed for a trademark of the iPhone name in China back in 2002, specifically centering around computer software and hardware, but Xintong Tiandi didn't do the same for leather goods until 2007, the year the iPhone launched in the United States. The leather case maker was granted that trademark in 2010. Following a few years of growing iPhone success, Apple decided to take the case to the Chinese trademark authority in 2012, subsequently filing a lawsuit in a lower Beijing court, and eventually losing both.

IPHONE case trademark

Xintong Tiandi's trademarked IPHONE case

The Chinese trademark authority's decision stemmed from its belief that "the general public will not link the trademark in dispute with Apple to harm its [Apple’s] interests," stating that Apple could not prove "iPhone" was a well-known brand in China before Xintong Tiandi trademarked it in 2007.

Apple continued to appeal, all the way to the Beijing Municipal High People’s Court, but the final decision has come and echoes the trademark authority's conclusion that the company can't prove it was a known trademark before 2007, since Apple's iPhone didn't launch in China until 2009. The court's judgement also made no distinction between the two stylizations of Apple's "iPhone" and Xintong Tiandi's "IPHONE" moniker.

Apple retains the computer software and hardware rights to the iPhone trademark, but with the new ruling, Xintong Tiandi can continue to manufacture and sell its "IPHONE" branded cases to the Chinese public. The accessory maker hopes that Apple will work with it moving forward to create a market that is beneficial to both definitions of "iPhone" consumers.

Xintong Tiandi wrote on its website that the court’s decision is a reflection of a “free market.” “We will also make full achievement of the ‘iphone’ trademark, and work together [with Apple] to benefit more iphone consumers!,” it said on the site.

China is Apple's second largest market in total revenue following the United States, and the company has been following a steadfast strategy of expanding its presence in the country with numerous retail shops opening frequently over the past few months. Still, unease and concern with China's strict internet policies have led to a few mishaps with Apple products. Most recently, that included the unexpected closure of the iTunes and iBooks stores when a dystopian film depicting Hong Kong in an unfavorable light launched on Apple's digital platform in the country.

Update: In a new statement, Apple confirmed it intends to keep fighting the trademark battle with Xintong Tiandi, all the way up to China's highest court. “We intend to request a retrial with the Supreme People’s Court and will continue to vigorously protect our trademark rights,” the company said in a statement to the South China Morning Post.

Tag: China

Top Rated Comments

captain cadet Avatar
105 months ago
Tomorrow post: Samsung launch Galaxy iPhone S in China
Score: 20 Votes (Like | Disagree)
macfacts Avatar
105 months ago
Wow, so much kool aid drinking going on. Apple only owns the name iPhone for electronics. How would you guys feel if Microsoft didn't allow companies to use the word "Windows" in the name of products even if they are not a computer company. People would call MS a bully.
Score: 10 Votes (Like | Disagree)
brendu Avatar
105 months ago
Apple should start moving manufacturing out of China if the Chinese want to play these games with Apple. I'm sure Venesulanians would be happy to make iPhones.
Score: 10 Votes (Like | Disagree)
drewyboy Avatar
105 months ago
Man, tons of you knee jerk. China was right with this decision but you wouldn't know any better with so many drinking the kool-aid or just being oblivious to how it works.

Apple DIDN'T have a trademark for whatever category that leather goods fits under. Or did most of you not know that trademarks are categorized? Apple lost fair and square. If they wanted to prevent something like this, they should have filed for every related (including accessories) category.
Score: 9 Votes (Like | Disagree)
kingtj Avatar
105 months ago
Seriously?! I actually side with the Chinese courts on this one. Trademarks and copyrights are both excessively strict in modern times. Realistically, nobody is going to think, "Ick... an iPhone? I'm not going to buy one of THOSE cellphones made by that Chinese leather case-maker! I'll just get one of these Androids instead."

And by the same token? Who CARES if someone stupidly believes this leather case with IPHONE stamped on the front of it is a genuine Apple product? It's just a cheap accessory. If it sells so darn well that it cuts noticeably into Apple's sales of its own phone cases, maybe it should start carrying them in its retail stores?

Apple should start moving manufacturing out of China if the Chinese want to play these games with Apple. I'm sure Venesulanians would be happy to make iPhones.
Score: 9 Votes (Like | Disagree)
69Mustang Avatar
105 months ago
I guess this is a case of the tail wagging the dog. Apple better get used to it when dealing with China. Apple isn't operating from a position of power so losses like this, and the closures of their digital stores is just going to be a part of doing business in China. Apple's level of acquiescence will determine their success in China.
Score: 7 Votes (Like | Disagree)

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