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Apple loses China fight over iPhone name

Thursday, May 05, 2016 - 01:40

A Chinese accessory company has won a lawsuit with Apple for the right to use the name ''iPhone'' on its leather bags and phone cases. Ryan Brooks reports.

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If you're in China and see an "IPHONE" bag, it's probably not from Apple. In fact, Apple's lost exclusive rights to the name... A Chinese court ruling in favor of a local accessories company - Xintong Tiandi because it beat the Silicon Valley giant to the punch Registering the name clear back in 2007 before the iPhone was really known here. Paul Carsten explains how Chinese companies get away with swiping brands. (SOUNDBITE) (English) REUTERS REPORTER, PAUL CARSTEN, SAYING: "For big brands in China, its really important that China's one of the first places where they do register their trademarks. Because if they don't, someone else, any company, is gonna do exactly that. They're gonna be first to the punch. And it doesn't matter if you're Apple, if you're Michael Jordan, or any other massive name in the West, Chinese courts tend to go with whoever registered first." Apple's opting for a retrial with the Supreme People's Court. It's not the first time Apple's been burned by Chinese trademark battles. (SOUNDBITE) (English) REUTERS REPORTER, PAUL CARSTEN, SAYING: "For certain Chinese companies, and not all of them, they're pretty enterprising. They realize that if they register the name that could become big in China in the future, they may be able to reach some kind of settlement and transfer the trademark to that company. So in this case, Xintong Tiandi, may be hoping to get some kind of payout for Apple, like the 60 million Apple paid to a company in 2012 for the use of the "iPad" name." The case piles on the bad new for Apple in China Regulators ordered the iTunes movie and book stores to shut down in April. And last week, Apple said China sales have plummeted by 26 percent. -leading activist investor Carl Icahn to sell his entire stock in the firm.

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Apple loses China fight over iPhone name

Thursday, May 05, 2016 - 01:40