Chinese court rules against Apple in design patent case
APPLE violated the design patents of a Chinese device maker and might have to halt sales of its latest iPhones in Beijing, the city’s intellectual property authority ruled, handing the US company its latest setback in a pivotal market.
The iPhone 6 and iPhone 6 Plus infringe on Shenzhen Baili’s patent rights because of similarities to its 100C phone, the Beijing Intellectual Property Office wrote in its decision. Apple, whose gadgets helped define the modern smartphone industry, did not respond to requests for comment. The company can appeal the ruling and could be allowed to continue selling its phones during the process.
Apple shares fell 1.3 percent to $96.30 at 9.32am in New York on Friday. They were down 7.3 percent this year up until on Thursday.
While the decision covers only Beijing, future lawsuits against Apple could take the case as a precedent, potentially influencing the outcomes of litigation elsewhere in China.
Baili is one of scores of smartphone brands trying to cash in on the country’s mobile boom. Xu Guoxiang, the inventor of the patent and listed as a Baili representative on yellowpages site czvv.com, did not answer calls seeking comment.
Chance to appeal
Apple, which is expected to launch its next-generation iPhone in a few months, could try to stave off a sales ban by appealing in several venues, including the Beijing Higher People’s Court and the Supreme People’s Court, intellectual property (IP) specialist Ted Chwu said.
“If the position by the Beijing IP office is upheld and Apple doesn’t appeal further, then in theory they wouldn’t be able to sell the iPhone 6 and iPhone 6 Plus,” he said.
The ruling by the agency, which administers matters involving patents in Beijing, is the latest in a series of setbacks for Apple in its largest market after the US. Its book and movie services were blocked in April for violating foreign publishing regulations. In 2013, state media accused the company of shoddy customer service and inadequate warranties, prompting an apology from chief executive Tim Cook.
Last month, it lost its fight to keep “iPhone” exclusive to its products after a Beijing court ruled that a little-known accessories maker could use the label for a range of wallets and purses. – Bloomberg