02 Jul 2012
Apple will pay $60 million to a Chinese company to settle the dispute over the “iPad” name, a court in Guangdong, China has ruled.
Proview Technology (Shenzhen) had claimed it owned the rights to the iPad trademark in the Chinese market because it registered the name in 2000, while Apple said it bought global rights for the brand three years ago. The Chinese court asked the two companies to try to reach a settlement which went into effect on June 25.
“All parties involved have agreed on the settlement,” said Xie Xianghui, a lawyer for Proview, as quoted by Xinhua News. “Proview and Apple now no longer have a dispute over the iPad trademark.”
Last month, the Chinese company was brought to court in a bankruptcy case with creditors claiming it owed more than $400 million to eight banks. The money Apple will pay according to the settlement is not enough to cover Proview debts. However, the iPad settlement can help Apple grab enormous opportunities in China, the second-largest market after the US, according to media reports.
Apple had bought the iPad worldwide rights from Proview's Taiwanese affiliate, paying $55,000, but Proview had argued in court that its partner didn’t have rights to sell the product in China too.
The Chinese firm also tried its luck by lodging a case against Apple in the U.S., claiming the company tricked it into selling the iPad rights by setting up a special firm in the UK. The case was dismissed by the court earlier this year.