Apple sued over counterfeit app claims

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Some app developers just want to watch the world burn. Photo: Warner Bros. Pictures
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Apple is being sued by China’s second biggest insurance company over claims that it allowed a “counterfeit app” to be sold in the iTunes App Store.

The app in question misleads users into thinking it is the official app of Lufax, the leading provider of wealth and financial assets management in China, and a subsidiary of the Ping insurance group.

Ping is arguing that users in China might download the counterfeit Lufax app instead of the legitimate one, and that the ensuing risk of fraud and potential loss for Lufax’s customers is significant.

A complaint was made to Apple back in August, although the company reportedly failed to respond within 60 days other than to acknowledge receipt of the complaint. Apple then contacted Lufax’s counsel, refusing to remove the counterfeit app, and telling Lufax to instead take their grievance up with the appmaker.

This developer is supposedly behind a number of fake apps in China, which take the name of well-known businesses and add the word “app” to give the impression that they are official.

Apple is being sued by Ping for trademark infringement, unfair business practises, false representation, and unfair competition.

The case has been filed in California Northern District Court, San Francisco the Texas Eastern District Court, although no judge has yet been assigned.

This isn’t the first time Apple has run afoul of companies claiming it is illegally profiting from counterfeit apps. In late 2012, Apple appealed an $84,000 fine from a Chinese court alleging it was making money from sales of a pirated encyclopedia that was sold through the App Store. On that occasion Apple refused to take responsibility for the copyright infringement and argued that it was nothing more than a store operator.

One would think a similar argument will be made here, if a settlement is not agreed upon in the meantime that sees the counterfeit app booted out of the App Store.

Via: Patently Apple

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