Chinese court rules Apple has to share the trademark 'iPhone' with a leather goods maker

UPDATE: May 4, 2016, 5:14 a.m. EDT Updated with comment from Apple and with additional information related to the India trademark case.

Apple now has to share the trademark for the word “iPhone” with a handbag and leather goods maker – at least in China.

As reported by Quartz (via the Chinese-based Legal Daily), the Beijing Municipal Higher People’s Court of Final Appeal ruled against Apple in a recent lawsuit.

Apple was battling Beijing-based Xintong Tiandi, which sells leather goods like smartphone cases and handbags under the name “IPHONE.” The lawsuit – which was settled in Xintong Tiandi Technology’s favor – actually dates all the way back to 2012.

Here is the basic gist: In 2002, Apple applied for the “iPhone” trademark in China (it wouldn’t actually be granted until 2013). Five years earlier, in 2007 (the same year the iPhone launched), Xintong Tiandi filed for its own “IPHONE” trademark. Xintong Tiandi was granted the trademark in the area of “Leather goods” in 2010

Apple first sued in 2012, but the Chinese courts ruled against the company, claiming that since the iPhone wasn’t actually sold in mainland China until 2009, it couldn’t prove that “iPhone” was a well known trade name.

And now an appeals court agrees. Which means that Xintong Tiandi can continue to sell leather goods embossed with the “IPHONE” brand.

In a statement on its website (translated by Quartz), Xintong Tiandi says that the court’s ruling is reflective of a “free market.”

In a statement to Mashable, Apple noted:

Apple is disappointed the Beijing Higher People’s Court chose to allow Xintong to use the IPHONE mark for leather goods when we have prevailed in several other cases against Xintong. We intend to request a retrial with the Supreme People's Court and will continue to vigorously protect our trademark rights.

We work hard to make the best products in the world and want to ensure our customers' experience is not compromised by companies who try to profit from using our brand.

It should be noted that Xintong is only able to use the "IPHONE" trademark on leather goods. It cannot use the mark for electronics, including phones. 

Not Apple's first trademark rodeo

This isn’t the first time Apple has faced trademark issues in China and other countries.

In 2010, Apple reached an agreement with the Chinese company who owned a trademark for the word “i-phone” as it applies to mobile phones back in 2004. It was important for Apple to secure the trademark to the similar name as it started its first push of the iPhone in China.

In 2012, Apple had to pay Shenzhen-based Proview Technology $60 million in a trademark dispute over the name “iPad.”

Last month, an Indian court ruled that Apple couldn’t use the term “Split View” – an iPad feature that is part of iOS 9 – because the trademark for a piece of software called “SplitView” belongs to a vendor for Microsoft. That decision was later stayed by another judge and the next court date in this case is scheduled for May 9.

In the United States, Cisco actually already had a trademark for the word “iPhone” long before Apple’s product even launched. Cisco sued Apple in early 2007 but the two companies were able to quickly settle the matter.

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