Having lost a trademark appeal in China over the right to use the iPad name there, Apple now faces a greater threat as authorities in at least one Chinese city have started to confiscate the tablet from store shelves.

The Next Web is reporting that the local Administrations of Industry and Commerce (AIC) in the city of Shijiazhuang, China has begun clearing the shelves of Apple’s iPad in stores where it has been found for sale in the wake of a trademark ruling. According to the court ruling, a Taiwanese display company named Proview International controls the iPad trademark in mainland China, who sold the trademark rights for other regions to an Apple-affiliated country back in 2006 for a mere $55,000.

Unfortunately for Apple, the remaining two trademark rights in mainland China are now coming back to bite them, with the Hebei Youth Daily reporting that the AIC has started to confiscate iPads as they are found on sale. Initially, the seizures were believed to be widespread, but iFeng is now reporting that the action appears limited to one city, Shijiazhuang, at least for now.

“It is also suggested that some outlets have opted to remove the device from their shelves to prevent potential issues with authorities,” The Next Web reported. “Such stores are apparently still selling the iPad, but customers are required to verbally ask for the device to avoid advertising the fact that it is on sale.”

How the action will shake out for Apple is anyone’s guess, but Proview appears to be playing hardball when it comes to the remaining pair of trademarks in China, likely having felt burned by selling the iPad name so cheaply before realizing who it was being sold to in the first place.

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(Image courtesy of The Next Web)