(CBS) - Apple could lose the right to call its famous tablet computer the iPad, if a Shanghai court rules against the computer company.
Proview Technology, based in Hong Kong, has filed a lawsuit against Apple for trademark infringement. Apple is being investigated to see if the claims are true that the company used the iPad name in violation. Proview has had the trademark for iPad since 2000.
Why would Apple put such a high-profile product in jeopardy to begin with? The answer to that is complicated.
According to Macworld, Apple claimed the trademark was sold to the UK-based company IP Applications, which then sold to Apple in 2010. The only problem is Proview claims the transaction was made by its Taiwan subsidiary, not the Shenzhen-based subsidiary.
Apple's claims the Proview's Taiwan subsidiary was acting as a representative for the Shenzhen subsidiary. Obviously, Proview disagrees.
Bloomberg reports Apple failed to claim the trademark in China and has filed for an appeal to the Higher People's Court of Guangdong province. All cases are currently pending.
If Apple loses the battle over the iPad trademark, the company will either have to pay a $1.6 billion fine or drop the name.