Apple may be slapped with a hefty fine as its legal battle for the use of the name iPad in China rages on, according to reports.
Beijing authorities are investigating Apple for possible trademark infringement after Chinese electronics maker Proview Technology filed a lawsuit against the Cupertino, Calif. tech giant for allegedly infringing on its rights to the iPad name, the Chinese newspaper the Global Times reported this week.
Apple previously purchased the iPad trademark for around $55,000 from Proview, which had registered it as early as 2000. But Proview claims the deal did not give Apple permission to use the name in mainland China. Proview further claims it still retains the rights to the iPad trademark there.
Proview's lawyer, Xie Xianghui, says Apple could be fined $38 million over the issue.
Xianghui told the Global Times that a court in the Xicheng district of Beijing "planned to slap Apple with a 240 million yuan ($38 million) fine, but it was suspended after Apple's objections." Officials in Xicheng, however, said they never announced the possibility of such a fine.
"It is still under investigation, so no official comments on the case can be made yet," a media officer told the Global Times.
The latest legal battle follows a challenge put forth by Apple against Proview last year, in which Cupertino said it owns rights to the iPad name in mainland China. A local court in December rejected Apple's case. Apple has reportedly appealed to a higher court.
Proview Technology is the Chinese arm of Proview International Holdings, a Hong Kong-based maker of crystal displays and other products.