We already told you about Apple appealing a China court’s decision about Proview owning the iPad name. Tonight, a new report indicates that iPads are being removed from retail stores in China, because of the court’s ruling.

Hebei Youth Daily reports that the Administrations of Industry and Commerce (AIC) has begun confiscating iPads from shelves. As translated by DigiCha…

Apparently as a result of the Proview iPad trademark infringement verdict, some local Administrations of Industry and Commerce (AIC) have started to confiscate Apple ($AAPL) iPads they find on sale. The article claims that many stores and resellers have taken the products off their shelves to avoid discovery by authorities, but if you ask for an iPad you can still buy one. It is not clear if this is going to happen nationwide or if this is just the action of a handful of local authorities, but Apple has a lot of risk in this case.

Not only is the AIC confiscating the iPads, but store owners are also removing the iPad from their shelves. Customers have to make it a point to ask for the iPad, rather than stores putting it on shelves to actually show the iPad is being sold.

Remember, China is a very key market for Apple where a good amount of sales can be made. Apple’s CEO Tim Cook even made a point to say so in Apple’s Q1 2012 earnings call that took place a few weeks ago.

Not only is Apple battling legal trouble with Proview over the iPad trademark, but it’s also up against Samsung in many countries. Just this week Apple sued Samsung over an autocorrect patent.

Do you think the AIC is right in taking the iPad off shelves?

[The Next Web]