"According to the ... provisions of the China Trademark Law, currently Shenzhen Proview is the legal registrant of the iPad trademark," Fu Shuangjian, a deputy director of SAIC, was quoted as saying at a news conference in Beijing.
This is a very bad sign for Apple as it signals how the government might rule. Proview has accused Apple of fraud and unfair competition in how it purchased the trademark.
"This case has a huge impact and the final court ruling would directly influence who owns the iPad trademark. The commerce department will (take the matter) very seriously," said Fu, whose department governs market regulation and supervision.
Proview says its still negotiating with Apple but no settlement has been reached.