Apple reached an agreement to pay Proview $60 million for the Chinese rights to the iPad trademark. Apple claimed to have bought global rights to the iPad name from Shenzhen Proview Technology, but the rights in China were never transferred. Last December, a Chinese court ruled that Proview still owned the name in China and authorities there were ordered to seize iPads.
Apple originally purchased the trademark through a European broker for $55,000. Proview, a Chinese manufacturer of computer monitors and other media devices, argued that the Chinese trademark hadn’t been included in the deal since legal representatives from its Shenzhen affiliate weren’t present when the contract was signed.
Settlement talks have been underway since April, with rumors afloat about Proview’s asking price (reported between $400 million and $1.6 billion) and lower settlement offers ($16 million) from Apple. News of the $60 million settlement went public last weekend, followed by a Chinese court officially declaring an end to the dispute. It’s expected that Apple will release its latest iPad in China shortly.
As PCWorld considers the fallout of the settlement, do you think the Apple is setting a precedent with this payment?