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Chinese company Xintong Tiandi Technology which sells handbags and other leather goods can continue to use the name “iPhone” after Apple lost the trademark fight in China.

The Beijing Municipal High People’s Court ruled in favor of Xintong Tiandi, the official Legal Daily newspaper reported.

Xintong Tiandi trademarked “IPHONE” for leather products in China in 2010.

Apple filed a trademark bid for the name for electronic goods in 2002, but it was not approved until 2013.

The Legal Daily is widely recognized as the official mouthpiece for China’s Central Political and Legal Affairs Commission. Its report came out in late April but has only just been widely circulated.Apple loses iPhone trademark fight in China

Xintong Tiandi sells handbags, mobile phone cases and other leather goods branded with the name “IPHONE” and the “R” registered trademark symbol.

Apple first brought the case against the company to the Chinese trademark authority in 2012. When that failed, Apple filed a lawsuit in a lower Beijing court.

Both ruled against Apple, so the tech giant appealed to the higher court.

The higher court ruled that Apple could not prove it was a well-known brand in China before Xintong Tiandi filed its trademark application in 2007.

Apple iPhones first went on sale in China in 2009.

The ruling comes close to Apple’s latest quarterly earnings report which showed a 13% drop in revenue on slower iPhone sales. Sales in China had plunged by 26%.

Apple is also facing difficulties in other operations in China. In March, Beijing passed a law that required all content shown in China to be stored on servers based on the Chinese mainland.

The move has widely been seen as a blow to Apple as China is the second biggest market for its products.

Apple has announced it is removing a malicious code added to a number of apps commonly used on iPhones and iPads in China.

It is thought to be the first large-scale attack on Apple’s App Store.

The hackers had created a counterfeit version of Apple’s software for building iOS apps, which it persuaded developers to download.

Apps compiled using the software could steal data about the users and send it to servers controlled by the hackers.

In addition, the attackers could send fake alerts to infected devices to trick their owners into revealing passwords and other information.China Apple's App Store Hit by XcodeGhost Malware

The infected applications include Tencent’s hugely popular WeChat app, a music downloading app and an Uber-like car hailing app.

Some of the affected apps – including the business card scanner CamCard – are also available outside China.

An Apple spokeswoman said apps created using the counterfeit software, XcodeGhost, had now been removed from the App Store.

“We are working with the developers to make sure they’re using the proper version of Xcode to rebuild their apps,” said Christine Monaghan.

On its official WeChat blog, Tencent said the security issue affects an older version of the app – WeChat 6.2.5 and the newest versions were not impacted.

It added that an initial investigation showed that no data theft or leakage of user information had occurred.

Potentially hundreds of millions of users were impacted by the infected apps, experts say.

Earlier this month, login names and passwords for more than 225,000 Apple accounts were stolen by cyber-thieves in China.

The majority of people affected were in China.