​Apple Settles China iPad Dispute Over Name

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July 3, 2012

Apple has agreed to pay $60 million to settle a dispute in China over the ownership of the iPad name, which removes all potential obstacles to sales off the computer tablet in the Chinese market.

Apple Settles iPad Dispute

The dispute with Shenzhen Proview Technology highlighted the possible pitfalls for global companies in China’s infant trademark system. It also posed a challenge for the communist government, which wants to attract technology investors to develop China’s economy, according to Fox News.

Apple says it bought the global rights to the iPad name from Proview in 2009 but Chinese authorities say the rights in China were never transferred. A Chinese court ruled in December that Proview still owned the name in China. Proview, which is struggling financially, asked Chinese authorities to seize iPads in an apparent effort to pressure Apple to settle.

“The iPad dispute resolution is ended,” the Guangdong High People’s Court said in a statement. “Apple Inc. has transferred $60 million to the account of the Guangdong High Court as requested in the mediation letter.”

China is Apple’s second-largest market after the United States and the source of much of the Cupertino, California-based company’s sales growth.

Proview hoped for more money but felt pressure to settle because it needs to pay debts, said a lawyer for the company, Xie Xianghui. He said Proview sought as much as $400 million and might still be declared bankrupt in a separate legal proceeding despite the infusion of settlement money.

“This is a result that is acceptable to both sides,” Xie said.

The dispute centered on whether Apple acquired the iPad name in China when it bought rights in various countries from a Proview affiliate in Taiwan for $55,000. The December court ruling said Proview, which registered the iPad trademark in China in 2001, was not bound by that sale, even though it was part of the same company.