Apple Inc. has recently lost a trademark lawsuit in China, with a court allowing a leather good-manufacturer to sell phone cases and handbags to brand their products with the exclusive “iPhone” name.
Xintong Tiandi Technology (Beijing) Limited sells goods branded with the name “IPHONE”, close to Apple’s iPhone mark, and the “R” registered trademark symbol.
The final judgement released by the court means Xintong Tiandi can continue to use the trademark to sell its products, state-run China Daily report on Wednesday. No official comments have been put forward by Apple on the ruling yet.
The decision could come as another strike to Apple’s business in China, which is the company’s second biggest market in the world, and where it hopes to gain much of its future growth from. The company also faced other problems in the Chinese market, with a drop in the growth of iPhone sales and disruption of its services caused due to new rulings.
In March, Beijing passed a law that required all content shown in China has be to from servers based on the Chinese mainland. As a result, Apple’s signature products like iBooks and iTunes were shut down in the country. Apple said it hoped “access to the services would be restored soon”. The move can be widely seen as a setback for Apple as China is the second biggest market for its products.