Apple has agreed to pay $ 60M (£38M) to Shenzhen Proview Technology more than the ‘iPad’ name dispute. Proview Technologies claimed that they had acquired the rights for the name iPad in 2000 when they registered their company in China. Nevertheless Apple stood with the truth that they have acquired the worldwide rights for the name in 2009 but Chinese authorities stated that the rights in the China were by no means transferred. A Chinese court ruled in December that Proview nevertheless owns the name rights in China for ‘iPad’.
Apple actually purchased the name rights of iPad from Proview’s Taiwanese affiliate for $ 55,000 (£35,000) but according to the Chinese firm, its affiliate did not have any authority to sell the name rights of iPad for China. Immediately after that Proview also requested the Chinese authorities to seize iPads to put a pressure on Apple to settle this dispute as soon as achievable.
The Guangdong High Individuals’s Court said in a statement,
“The iPad dispute resolution is ended, Apple Inc. has transferred $ 60 million to the account of the Guangdong High Court as requested in the mediation letter.”
Immediately after the court announced the settlement, Proview confirmed that the dispute has been settled and each firms are satisfied with the settlement. Analysts also said that after the settlement of the dispute in between the two firms, it is highly unlikely that Proview would take any further action against Apple.
China is Apple’s second largest market immediately after United States due to which Apple doesn’t want to destroy its business relations with the authorities of the nation as a result it showed a positive behavior about the situation proceedings and settled the dispute as per advised by the court. Proview hoped for some far more funds but felt pressure as it needs to pay debts urgently.
The dispute between both firms was not restricted to China. Proview also claimed that Apple launched a specific business in Roydon to acquire the rights of iPad name and as a result they also lodged a case in United States against Apple. The case was based on the fact that Apple deceived Proview in promoting the name rights by setting up a firm, “IP Application Development Limited” (IPADL) in the United Kingdom. Apple answered about the claim saying that the trademark was just an “Abbreviation for the Business Name”. Nevertheless, that situation was dismissed by the court earlier this year.
Apple also ran into an problem about the trademark when Apple launched its iPhone back in 2007.