Apple Inc suffered a setback in the Chinese market today as a court rejected its lawsuit against a local company for alleged infringement of its 'iPad' trademark, as a result of which it may have to sell the product under a new name in China or cough up USD 1.6 billion.

Apple may have to sell its popular iPad tablet computers under a new name in the Chinese mainland in future if it does not first purchase the trademark from a Chinese tech firm as a result of the verdict, official media here reported today.