Whenever fashionable people become immersed in their own worlds holding their iPhones and wearing the earphones, people can’t help to glance at them sideways, not in amazement of how chic they are, but in hopes of getting a glimpse of the iPhones. Apple Inc. is committed to making stylish and personalized products. However, the high prices unfortunately scare many fans.
The Apple iPod Touch is a media player, while the iPhone is a smart phone. The two are similar in appearance, but their prices greatly differ. An iPod Touch runs about 1,000 Yuan, but the price of an iPhone is around 5,000 Yuan. The difference in pricing is caused by their dissimilar functions. An iPod Touch could be seen as an iPhone without the functions of making phone calls, sending messages and filming videos.
The Apple logo is an image of an apple with a bite taken out. This mouthful arouses the business appetite of many. In early August, a product called the “Apple Peel 520” caught the eyes of iPhone fans and became popular throughout the Internet. The birth of Apple Peel 520 makes iPhone fans without enough money excited because it can transform an iPod Touch into an iPhone. The producer of the Apple Peel 520 is Yosion Technology, a company founded by two brothers in Henan. The Apple Peel 520 is a functional back, custommade for the iPod Touch. It is understood that its communication function depends on a communication module in the back. There is a SIM card slot, battery, handset and other related components on the module. Inside the Apple Peel 520 is an Infineon module. The iPod Touch lacks a dialer program. If it could be used to make a call, third-party software needs to be installed (namely a “prison break,” which means opening user rights, breaking through an Apple program to freely install and run third-party software), then a special dialer program and program for sending messages has to be installed. It is reported that the price for an Apple Peel 520 runs about 388 Yuan. If the combination of the Apple Peel 520 and iPod Touch could function like an iPhone, it is believed that the price gap of several thousand Yuan would make it win the favor of many consumers. According to the news from the official website of Yosion Technology, the Apple Peel 520 is being produced and entered the market in September 2010. Most netizens highly praise the Apple Peel 520 and consider it very creative. However, some doubt its legality. An article on caijing.com.cn predicted that “the modification is too unpredictable to be legally permissible with so many uncertainties as to affect the business prospect of the Apple Peel 520. Although the Apple Peel has substantial differences from earlier Shanzhai versions of the pirated iPhone, it might still be unable to escape the Shanzhai model for survival.”
Prediction one: Whether Apple Peel 520 is a Shanzhai product
Before the Apple Peel 520, iPhone has been well battered by Shanzhai products in China. Some netizens believe that the Apple Peel 520 smells more or less Shanzhai, but the lawyers and specialists interviewed by our reporter think otherwise. Mr. Tang Xiyou, a lawyer of the Guangdong Li Quan Law Fir m, commented that the Apple Peel 520 is an innovation rather than imitation; it was originally developed by Yosion. As such, it is not an act of Shanzhai, which is the copying of another’s product. Mr. Cai Xinhua, a lawyer form the Sichuan Jia Shi Law Firm, shared the view that Shanzhai, in general understanding, is a takeoff of another’s product. According to relevant data, however, the Apple Peel 520 does not merely copy the physical appearance of the iPhone; nor does it clone the high-tech application system. It is an expansion of the iPod Touch functions, and structurally very different. Dr. Yun Zhenfu, deputy director of the Shanghai Intellectual Property Association, said in the interview, “The iPod wearing Apple Peel 520 really looks like a Shanzhai product of iPhone. But a Shanzhai doesn’t necessarily mean that it lacks innovation. At least, Apple Peel 520 itself is ingenious and creative.”
Although the Apple Peel 520 could cast off the suspicion of copycatting, it couldn’t avoid the fate of being shanzhaied. There are many copycats of the Apple Peel 520 appearing on the market throughout China even before Apple Peel enters into the market. The Henan brothers have reportedly said, “We are angry but could do nothing about it.”
Prediction two: whether Apple Peel 520 infringes on the trademark of Apple Inc.
Since the Apple Peel 520 hasn’t been placed on the market up to the time this article was written, some intellectual property issues are mere speculations. Regarding the issue of trademark, Yuan Zhenfu considered that if Yosion Technology uses “Apple Peel” as a trademark for this product, it might constitute trademark infringement because “Apple Peel” is similar to the “Apple” trademark registered in China by Apple Inc. Tan Wenye, a lawyer from the Anova Law Group, said that Apple Inc. might assert its trademark right by claiming: “Apple Peel” is likely to cause confusion as to “Apple” and Apple Peel 520 would very probably trade on “iPod Touch”, “iPhone” and other trademarks of Apple Inc.
