It seems Apple is really passing though a bad phase. After its services like iTunes Movies and iBooks being banned in China and a 11 percent drop in earnings during the first quarter of 2016, the Cupertino tech titan has now lost a trademark suit against a little known Chinese firm Xintong Tiandi Technology, which deals in leather products such as cell phone cases, handbags and much more under the brand name "IPHONE."
The trademark dispute between the U.S. multinational and the local Chinese firm dates back to 2012, as Apple contested to gain special rights over the iPhone brand. However, both the Chinese trademark authority and a lower court in Beijing rejected Apple's claims. Although Apple appealed against these orders on March 31, even the Beijing Municipal High People's Court dismissed the plea, granting Xintong Tiandi the rights to sell its products under the "IPHONE" brand name, Quartz reported.
Although Apple filed an application to trademark "IPHONE" way back in 2002, the authorities did not approve the trademark until 2013 under Class 9: Electrical and Scientific Apparatus. In 2007, about 5 years since Apple's application, when the Cupertino tech giant was gearing up for the launch of its first iPhone in the United States, Xintong Tiandi also applied for the same trademark in China. The authorities approved the Chinese company's trademark application in 2010 under Class 18: Leather goods, Legal Daily, a local media, reported.
It is worth noting here that the Legal Daily (in Chinese language) is generally recognized as the official ambassador for China's Central Political and Legal Affairs Commission. Although the media outlet published this report toward the end of April, it has been circulated widely only recently.
Interestingly enough, the Chinese authorities declined Apple's plea to revoke Xintong Tiandi's trademark on the ground that Apple's iPhone was not a well-known product in the area when Xintong Tiandi filed its application. Since Apple's iPhone arrived in the Chinese mainland market only in 2009, the Cupertino tech titan failed to prove that the "IPHONE" brand had high visibility before Xintong Tiandi entered the market space.
