Today the Chinese court has stated Apple, Inc. has agreed to pay a local Chinese company $60 Million dollars to settle their infamous iPad name dispute.
BREAKING: Chinese court says Apple to pay local company $60 million to settle iPad name dispute.
— The Associated Press (@AP) July 2, 2012
In 2006 Apple purchased the Taiwanese rights to the name “iPad” from the company Proview Electronics. In China however, the trademarked name was still owned by Proview Technologies, a Shenzhen based subsidiary of Proview Electronics. Since 2011, Proview Technologies has battled Apple in the Xicheng district court and in 2012 the Santa Clara Superior Court. Both cases are still ongoing.
Apple has legally bought the global rights for the “IPAD” name through a UK proxy company called “IP Application Devlopment” in 2006 for $55,000. Proview Technologies soon after launched their lawsuits against Apple after finding out the Cupertino based computer company purchased it through a proxy and not them directly.
On June 1st 2012, the Guangdong High People’s court worked with both of these companies and settled upon $60 million dollars through mediation outside of the courtroom. Proview Technologies has claimed that since the deal was made in Taiwan, the Chinese rights were not sold at the same time.
Proview Technologies is considering this a step closer to winning the US trademark battle with Apple. In May of this year, Apple offered Proview a $16 million dollar offer which Proview refused. Proview is continuing their lawsuit in Santa Clara for $1.5 billion dollars while allging fraud and unfair competition. The case was soon after thrown out by a judge.
Proview is currently trying to ban all shipments of Apple’s Ipad into and out of China while the legal battles are still ongoing. After this win in the Guangdong court, time will tell if Proview continues to seek a ban of iPad products or not.