Apple Patent Infringement Case May Lead To A Cease of iPhone Sales in China

The Legal Issue

Beijing’s Intellectual Property Office recently held that Apple's iPhone 6 and iPhone 6 Plus infringe on design patent rights held by Chinese device maker Shenzhen Baili. The reason for the decision was because Apple's iPhones too closely resemble the Chinese company’s 100C phone, reported Bloomberg News. Apple has appealed the decision to a higher Chinese court. Until a final ruling is made, Apple will continue to sell its iPhones in China, Apple spokeswoman Kristin Huguet told Bloomberg News.

Apple's Response and Analyst's Opinion

BMO Capital Markets analyst Tim Long in New York doesn’t believe the ruling is conclusive. "We have seen dozens of court decisions banning different smartphone products over the years in many different countries. We are not aware of one ever that has resulted in an actual injunction," Long said.

Previous Ruling and Impact on Apple

Despite the fact, there is no doubt this is taking a bite out of Apple as this ruling is among many recent obstacles for the tech giant. About a month before this, the Beijing tribunal ruled against Apple allowing a small Chinese maker of accessories to use the iPhone name as a label for wallets and purses.

Conclusion

Apple's iPhone 6 and iPhone 6 Plus have been found to infringe on design patent rights held by Chinese device maker Shenzhen Baili. Apple has appealed the decision to a higher Chinese court. Despite this ruling, Apple will continue to sell its iPhones in China. BMO Capital Markets analyst Tim Long believes that the ruling is not conclusive and does not expect it to result in an actual injunction. This ruling is among many recent obstacles for Apple, including a previous ruling against Apple allowing a small Chinese maker to use the iPhone name for accessories.