Apple pays $60 million for “iPad”

Apple has agreed to pay $ 60 million for the rights to use the name iPad inChina. It could have been a lot worse however: the payment settled a lawsuit claiming $ 1.6 billion.

The case came about due to the fact the Chinese firm Proview registered the name iPad (or rather IPAD) in 2000. Apple doesn’t dispute that Proview came up with the name very first.

In 2009, a mysterious British firm known as IP Application Development was registering the name as a trademark around the globe. The firm didn’t actually create something, but was effectively a shell business controlled by Apple that had been set up solely to get the trademark without having anyone figuring out Apple was working on a device named iPad.

Amongst these registrations acquisitions, Apple bought the rights to use the name from a Proview subsidiary firm in Taiwan. When the Chinese firm complained about the situation last year, Apple argued that it was beneath the impression the deal with the Taiwan business was to take more than its globally rights. The Chinese firm says its Taiwan subsidiary didn’t supply such rights and the deal can only ever have been for use of the name in Taiwan.

Proview, which by now was beneath the control of administrators, launched a lawsuit in China calling for ten billion (US$ 1.6 billion) in compensation. It also asked for an injunction on sales there had been some reports of neighborhood officials in China clearing iPads from shop shelves, though these appear not to have been authorized by courts.

Apple has now agreed to spend $ 60 million to settle the situation and have the rights to use the name in China. That’s a single hell of a premium given it only paid $ 55,000 to use the name in Taiwan, but when you take into account the possible damages and court expenses, and then appear at the prospective positive aspects of getting capable to target the Chinese industry with out further legal difficulties, it may possibly effectively be a value worth paying.

A separate situation filed by Proview in California had accused Apple of misleading it by means of the use of the shell business, potentially tricking it into accepting a low price for the trademark the logic was that if Proview knew it was Apple purchasing the name, it would have figured out it would be for a potentially hugely lucrative product. That situation has currently been dismissed.

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