Apple's loss signals rise of IP-minded China firms

Domestic companies bulk up patent portfolios through deals, acquisitions or intense research

Apple Inc's loss in a Chinese patent dispute may spell more legal trouble ahead as fast-rising local rivals get bolder in taking on the world's largest technology company.

The Beijing Intellectual Property Office ruled last week that some Apple devices violate the design patents of little-known Chinese smartphone vendor Shenzhen Baili. While the iPhone maker appealed to keep its best-selling gadgets on the market, it could face a rising tide of lawsuits and a threat to its sales if the ruling creates a precedent, according to Counterpoint Research.