Last week, the Beijing Intellectual Property Office ruled that the two iPhone models infringe upon patents held by Chinese rival Shenzhen Baili for its 100C phone model. As a result, Apple may face a block on sales of the iPhone 6 and 6 Plus models in Beijing, though sales will be allowed to continue in the interim if Apple chooses to launch an appeal. While the ruling only applies to the Beijing market, it could be taken as a precedent for other IP challenges against Apple elsewhere in China.

‘Patent trolling’

The decision against the iPhone 6 is yet another setback for Apple in China, where intellectual property laws tend to disadvantage foreign companies in favour of local designers and manufacturers. Under Chinese IP law, local companies are able to register patents for designs and technologies already featured in products outside of China. Mass-scale patent buy-ups, known as ‘patent trolling', are also commonplace. In the case of the iPhone 6, the patent dispute reportedly pertains to elements of the product’s external design.

Another setback

The ruling in Beijing is yet another in a series of blows to the circulation of Apple products in China, a key growth market for consumer technology companies. In April, Apple was also ordered to cease its iTunes Movies and iBooks services in the country following alleged violations of China’s foreign publishing regulations. Apple was also forced to pay $60m in 2013 to Proview International Holdings in order to settle a dispute over its right to use the ‘iPad’ name in China. Apple shares fell 1.3 per cent to $96.30 per unit on Friday.

Sources: Wall Street Journal; BigLaw Business