Apple is in some serious problems, as the company's chances of winning the iPad trademark battle against ProView is looking slim. After senior official Fu Shuangjian, China's deputy director of State Administration for Industry and Commerce (SAIC) mentioned that Apple does not own the iPad trademark in China, you have the feeling Apple will be forced to pay ProView millions, if not billions, to settle the case outside of court. However, knowing Apple, the company will continue to contest ProView claims in court in hopes to find a loophole out of the current situation.

Fu Shuangjian stated the following, which is the first public comment by any government official:

"According to the ... provisions of the China Trademark Law, currently Shenzhen Proview is the legal registrant of the iPad 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."

The above comment is a nightmare right now for Apple, because it signifies what a Chinese court could eventually rule, and this is not good for Apple as the company would be forced to bow heads with ProView in peaceful monk fashion. Maybe Apple should consider ProView's suggestion of settling out of court, because losing could very well mean being forced to pay more than what a deal could formulate outside the courts.

Apple is so hell bent on winning, the company refuses to sell its new iPad in China, which is seen as a move to pressure the Chinese government. However, we are skeptical this might be the case, China is the largest market in the world and only Apple stands to lose here if it stands its grounds and keep the new iPad out of Chinese hands.

How far is Apple willing to go? Time will tell. But since the government already pronounced Proview as the owners, there is no doubt in our mind that the court will do the same and Apple will have no choice in the matter but to settle out of court.

Hopefully martial arts and a sword won't be brought into play. That could be bloody.

(reported by Vamien McKalin, edited by Dave Clark)