Apple Vision Pro: Can it See China?
By Jarrid Outlaw
Apple is slated to release their next big market product the “Apple Vision Pro” early next year.[1] The vision pro is an augmented reality (AR) headset that also acts as a standalone computer.[2] Apple proclaims this product to be the first “spatial computer.”[3] It combines everyday apps we use on our phones and computers and projects them as an interactive canvas, while still allowing the user freedom to see the environment around them.[4] It also connects with MacBooks, allows you to make the canvas as big and small as you want, has state of the art resolution, and works as a standalone computer.[5] Tim Cook, Apple’s CEO, had this to say, “Apple Vision Pro introduces us to spatial computing. Built upon decades of Apple innovation, Vision Pro is years ahead and unlike anything created before — with a revolutionary new input system and thousands of groundbreaking innovations. It unlocks incredible experiences for our users and exciting new opportunities for our developers.”[6] Though Apple has come up with numerous new and exciting technological innovations, they will have a hard time in the global market due to China’s trademark law.[7]
While domestically there is no issue the release of the vision pro, Huawei Technologies Co., based in China, trademarked “Vision Pro” in 2021.[8] Huawei Technologies Co. (Huawei) is a large tech company based in China that was once a major smartphone rival to Apple.[9] The two companies have faced in the legal realm before in 2021 where they engaged in a trademark battle and Apple lost a legal attempt to block Huawei’s use of the term “MatePod.”[10] Huawei filed the application in 2019 and they were granted the exclusive rights to the term in 2021 for the duration of a decade by the China National Intellectual Property Administration (CNIPA).[11] Since Apple intends to sell this product globally, CNIPA and China’s laws will halt sale of the product because such a sale would constitute as trademark infringement based on China’s intellectual property laws and previous court rulings.[12] What can Apple do? There are few options Apple has when it comes to their current issues. Apple can: (1) rebrand the headset and name it differently for only the Chinese market, (2) negotiate with Huawei to use the name in China, and (3) they could decide not to sell the product in China.[13] Out of the three options the clear choice is to rebrand the product in China. Negotiating with Huawei would be a time-consuming process that only might meet their goal of selling the product there. [14] Negotiations to get exactly what each party wants while both considering future consent, international laws, competition/anti-trust laws, termination, challenges, obligations, and so forth can become tiring and delay the planned release for the product.[15] Not selling the product in such a large market is a greater loss since China is one of the largest tech markets in the world. As Apple’s first new major product in almost a decade, Apple would not want their release day spoiled by trademarking issues. CEO Tim Cook has even said that “the beginning of a new era for computing”.[16] With such a groundbreaking product Apple will want the easiest transition possible for the product to enter the market. Neither Apple nor Huawei have responded to requests for comment since the news of the trademarking issues arose.[17] You Yunting, a senior partner at Shanghai Debund Law Firm, remarks that Apple may trademark the term “Apple Vision” since the word “Vision” is not distinctive.[18] Overall while globally Apple is still looking to have a smooth launch, Chinese trademark law is the only thing standing in the way of Apple’s full release of the Apple Vision Pro.
[1] Abid Ahsan Shanto, Huawei Holds Trademark For “Vision Pro” Name in China, Apple May Face Troubles, Gizchina, June 12, 2023.
[2] Introducing Apple Vision Pro: Apple’s first spatial computer, Apple, June 5, 2023.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] Apple’s new AR headset may face trademark issue in China as ‘Vision Pro’ name already belongs to Huawei, South China Morning Post, June 12, 2023.
[8] Id.
[9] Id.
[10] Id.
[11] Id.
[12]Apple’s new AR headset may face trademark issue in China as ‘Vision Pro’ name already belongs to Huawei, South China Morning Post, June 12, 2023.
[13] Abid Ahsan Shanto, Huawei Holds Trademark For “Vision Pro” Name in China, Apple May Face Troubles, Gizchina, June 12, 2023.
[14] Id.
[15] Negotiating Trade Mark Settlement and Co-Existence Agreements, AJ Park, Sep. 23, 2019.
[16] Supra note 13.
[17] Id.
[18] Id.
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