Apple could have a pretty major problem, to the tune of $38 million in fines and a huge hit to sales, as claims by another company that they registered the name iPad for use in mainland China in 2001 gain momentum. One report says officials were seizing iPads from store shelves as a result of the issue.

PCMag cites the Hebei Youth Daily, which said authorities removed around 45 iPads from Shijiazhuang stores in Northern China. Once other stores heard of the inspection teams, they took the devices from the shelves preemptively.

Proview, the company which claims to have registered the iPad name in 2001, complained to the district’s Administration of Industry and Commerce team, which reportedly took action starting on Feb. 9. Fines could reach $38 million if Apple is found to be in violation.

Other seizures haven’t been reported yet, and the iPad 2 is still on sale in the Chinese online Apple store.

Chinese Authorities Seize iPads Over Trademark Dispute [PCMag]

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