A lawyer for Proview Shenzhen, Xie Xianghui, is claiming that a court in the Xicheng district of Beijing is prepared to “slap Apple with a 240 million yuan ($38 million) fine,” according to the Global Times. The Xicheng district administration, though, is refusing to comment. “It is still under investigation, so no official comments on the case can be made yet,” a media officer with the administration states. The China Daily meanwhile quotes Xie as also demanding an apology, and an injunction against the sale and marketing of iPads in China.
At the core of the dispute is a 2006 agreement in which Apple bought the iPad trademark from Taiwan’s Proview Electronics for $55,000, by way of a front business known as IP Application Development. Proview says, though, that Apple didn’t win the rights to the Chinese trademark, since those were owned by Proview Technology in Shenzhen, a subsidiary of the Hong Kong-based Proview International.