Apple Co. has legally lost its exclusivity on the use of the "iPhone" trademark in China. The tech giant must now share it with Beijing-based leather products maker Xintong Tiandi Technology Co.
According to Quartz, Apple Inc. recently lost trademark lawsuit against Beijing's Xintong Tiandi Technology Co. over the use of IPHONE name in the country. The local Chinese tech company registered the IPHONE trademark in 2010, which was granted under Class 18: Leather goods. Xintong Tiandi Tech has been selling leather goods such as handbags, cell phone cases and more with the brand name IPHONE since 2010.
The court's decision makes no distinction between Apple's lower case "i" in the brand and Xintong's uppercase "I", referring to both company's brands as "IPHONE". The court is in favor of Xintong because Apple couldn't prove the word IPHONE was popular in China before Xintong's registration, Wingate Wire cited.
Because of the court's ruling, Xintong Tiandi stated via their official website, "The judgement 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", Tribu Magazine reported.
From now on, Apple Co. will have to share the trademark with the Beijing-based leather products maker Xintong Tiandi. The tech giant is already facing a few too many issues across Asian countries, with Chinese revenues down year over year and India refusing to let it sell refurbished iPhones in the country.
The trademark lawsuit between Apple and the local Chinese company began in 2012 as Apple fought to gain exclusive rights over the iPhone brand. The trademark authority in China as well as a lower Beijing court dismissed Apple's claims.
Apple appealed but on March 31st, the Beijing Municipal High People's Court rejected the appeal, allowing Xintong Tiandi to keep selling its IPHONE products to the local Chinese market.
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