Proview asks distributors to kill iPad HD in China

Chinese ipad maker Proview, which is battling Apple over the iPad trademark in China, has asked Chinese distributors to stop selling the new iPad HD.

The outfit has penned an open letter to China’s suppliers and resellers and urged them to immediately stop selling, storing and shipping the iPad as of yesterday.

The letter is effectively a cease and desist notice where Proview threatens distributors with legal action.

According to Reuters  the dispute has dented sales of the iPad in China, Apple’s second largest market by revenue, and the two sides are now awaiting a key ruling by the high court in Guangzhou after a lower court ruled in favour of the Chinese firm last year.

Rachel He, a lawyer with the appropriately titled law firm Guangdong SunKindle told Reuters that it was Proview’s strategy to give Apple more pressure in the Chinese market, to try and add another blow to its iPad sales there

She did not think it will affect the decision of the Guangzhou high court because that ruling will be based more on the new evidence presented last week.

Chinese media have reported that Proview is seeking up to $1.6 billion in compensation for trade mark infringement.

Proview has said it wants an out-of-court settlement, which usually involves the payment of compensation, which analysts have said the company needs to repay its creditors.