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Apple pays $60 million in iPad trademark dispute, makes peace with Proview
Earlier this year, iPads were flying off the shelves in China -- but not for the expected reasons. The slates were being removed from stores following an injunction granted to Shenzhen Proview Technology, a local firm that had laid claim to the iPad trademark. The injunction would later be rebuffed by a Shanghai court, resuming tablet sales while the dispute raged on. Today, Apple and Proview have come to a resolution, putting $60 million in Proview's coffers and the matter to rest. Feeling lost? Let us catch you up. Way back at the turn of the century, Proview's Taiwan branch registered the "iPad" trademark for its Internet Personal Access Device -- an all-in-one PC that wasn't unlike Apple's own iMac. Later on, Apple would purchase the worldwide rights to the name from the Taiwan branch, which presumably included Shenzhen Proview Technology's claim -- though the Chinese vice minister for the State Administration for Industry and Commerce (SAIC) would later declare Proview the trademark's rightful owner. Fast forward to today, and the two firms are finally settling. According to The New York Times, Proview had originally sought as much as $400 million, but has agreed to settle for a lesser amount to help it pay its debts. Either way, Apple seems to have already transferred the sum, according to the Guangdong High People's Court, apparently eager to put the dispute behind them.
Chinese official says Proview owns iPad trademark in China, court battle continues
Who knew some funky capitalization could cause so much trouble? Proview -- the purveyor of that 90s-era all-in-one called the iPAD -- hasn't let up in its fight to wrestle the rights to the iPad name from iPad maker Apple. The legal antics started in China, where Proview temporarily managed to get Apple's tablet booted off store shelves before being rebuffed by a Shanghai court -- after which the company promptly brought the case stateside. It's been all quiet on the iPad trademark front for a solid month now, but a report from All Things D indicates that the squabble is still going strong. Today the Chinese vice minister for the State Administration for Industry and Commerce (SAIC) declared that Proview is, in fact, the rightful owner of the iPad trademark. The SAIC has so far kept mum about the iPad trademark spat, so its decision to break that silence is sure to carry some weight when it comes time for the Chinese higher court to hand down its verdict.
Introducing the original iPAD, Proview's late '90s iMac-like desktop
So, have you been following the iPad dispute in China? Wondering exactly who or what this Proview company is and what they're doing with a trademark on the iPad name? Well, wonder no more friends. The company actually stylized the name as iPAD, and it stood for Internet Personal Access Device. They hit the market way back in 1998 and weren't tablets, but all-in-one PCs that looked an awful lot like another machine that debuted that year -- the iMac. Over the course of a decade Proview produced between 10,000 and 20,000 of he 15-inch CRT desktops, before collapsing in 2010 and abandoning its Shenzhen plant, thanks in part to the economic crisis engulfing the globe. Most of its assets, including the iPAD trademark are now the property of eight different banks and its debts exceed $1 billion, which probably explains why the company is demanding so much money from Apple. For more details about the original iPAD and a photo tour of the deserted factory hit up the source links.
Hong Kong court allegedly sides with Apple in iPad name dispute
If you've been following the latest bub around the hub, you may remember Apple's recent scuff with Shenzhen-based Proview Technology -- the Chinese outfit that holds the local trademark on the name "iPad." Not only did Apple lose a trademark lawsuit for the iPad name, but some time later mainland government had the slabs removed from retailers in the city of Shjiazhuang. Now, Apple's claiming that a Hong Kong court has sided with it in a similar battle, saying in a statement to China Daily that they purchased "Proview's worldwide rights to the iPad trademark in 10 different countries several years ago," referring, perhaps, to the deal they made Taiwanese arm of the company, "Proview refuses to honor their agreement with Apple." Xie Xianghui, Proview's lawyer, shot back with his own statement, explaining that the court merely ruled that the trademark couldn't be sold to a third party before hearing ends, claiming that this move does not count as a ruling in Apple's favor. Xie went on to suggest the issue stemmed from Apple underestimating the legal complications of doing business in China.
Reports: Authorities removing iPads from stores in China, following trademark ruling
Government authorities and retailers have reportedly begun removing iPads from stores in China this morning, in apparent response to a ruling issued in December. According to China's Hebei Youth Daily, local representatives of the country's Administrations of Industry and Commerce (AIC) have started confiscating Apple's tablet from retail outlets, with some merchants voluntarily removing the device from their storefronts as a preemptive measure. The scope of this operation remains unclear, though China.com reports that as of 5:00 PM yesterday, authorities had seized some 45 iPad 2s. Retailers who voluntarily removed their iPads apparently did so to protect their stocks from confiscation, and are reportedly continuing to sell the tablet behind the counter. These reports come nearly two months after Apple lost a trademark lawsuit against Proview Technology, which successfully defended its ownership of the iPad name within China. We're still waiting to see whether this is part of a larger nationwide campaign and Apple has yet to comment, but we'll update this post as soon as we hear more. Update: China's iFeng is now reporting that these seizures took place in the city of Shijiazhuang, as part of what appears to be an isolated campaign. Update 2: Looks like the iPad is no longer on sale at Amazon China.
Apple could be forced to stop selling "iPads" in China
Stick with us on this one -- it seems unlikely, but this case could have some wider consequences. Last year, Apple filed a lawsuit against a company named Proview Technology Shenzen in China. It was pretty common by Apple's standards: The company was using the name iPad, and Apple was trying to keep them from doing so. While this was all going on, Proview Taiwan (only loosely affiliated with the Shenzen division) sold the trademark to "iPad" in China to a UK-based company named Application Development, which then sold it right back to Apple. All of this would normally be fine and dandy except for one thing: Apple lost the original lawsuit that was supposed to prevent Proview Shenzen from using the name. As a result, Proview Shenzen is arguing that it still retains the rights to the "iPad" name on the Chinese mainland, and Apple may be fined as much as 2.4 billion yuan ($380 million US). Obviously, this is a tangled legal issue, and I'm sure Apple still has options in the fight before they need to cough up the fine. But there's obviously something here that needs to be worked out, and if it isn't in time, Apple could be prohibited from selling or marketing its tablet under the name "iPad" in China. [via Gizmodo]
Chinese court rejects Apple's claim to the iPad name, faces potential sale ban
Before starting to sell the iPad in China last year Apple attempted to trademark the name in the country, but that request was rejected since it was already owned by Shenzhen-based Proview Technology. Apple reached an agreement with the Taiwanese arm of the company for global rights to the moniker, but the Chinese unit, which owns the trademark in that particular country, wasn't so willing to hand over the deed. Apple sued, but the Shenzhen Intermediate People's Court rejected Cupertino's claim to ownership earlier this week and now the iPad manufacturer finds itself on the wrong side of a battle over intellectual property rights. Proview Technology has targeted resellers in Shenzhen and Huizhou, demanding an immediate halt to the selling of the iOS tablet. If successful the company plans to expand its quest for an iPad ban to the rest of China. Obviously, Apple can (and likely will) appeal the decision, but we're interested to see how this one shapes up.
