Apple Settles Chinese 'iPad' Trademark Dispute with Proview for $60 Million

[sparkie7]

I don't care for this type of deal at all.... since proview clearly had no intent on making $60 million from an actual iPad of any sort... but whatever.

At least Apple's lucky enough they've got the cash to settle it and move on!

But they may have had plans/intent to use the name to sell whatever. Maybe a touchscreen LCD/TV interactive screen for cars and could have made millions from it.

It is one of the top five in the world monitor manufacturers, so does make you wonder if they caught wind of the iPad name before  had a chance to file the paperwork in China for the ™

 

[flameproof]

But they may have had plans/intent to use the name to sell whatever. Maybe a touchscreen LCD/TV interactive screen for cars and could have made millions from it.

It is one of the top five in the world monitor manufacturers, so does make you wonder if they caught wind of the iPad name before  had a chance to file the paperwork in China for the ™

Have a look at the Proview iPad:

https://www.macrumors.com/2012/02/2...ce-off-in-shanghai-court-over-ipad-trademark/

I presume that even the strongest Apple haters will prefer Apple's iPad rather then Proview's.

 

[sparkie7]

Have a look at the Proview iPad:

https://www.macrumors.com/2012/02/2...ce-off-in-shanghai-court-over-ipad-trademark/

I presume that even the strongest Apple haters will prefer Apple's iPad rather then Proview's.

Missed that. Yeah its butt ugly. But still doesn't negate the fact they had prior registration and right to the trademark.

 

[Piggie]

What a disgusting world we live in when a name costs $60 million. People dying of hunger all over the world.

Yes, and all Apple could of done, if it wanted was to change the name a little for it's product in a different country.

Like I'm sure we know other manufacturers do on some products, either for copywrite, or meaning of the word in that language reasons.

I'm not saying they should of, buy they easily could of, like others do and not have spent the 60 million.

It was Apple's own choice not to do so.

 

[iMikeT]

I fully agree, but as a shareholder I would rather Apple pay $60M to open up iPad sales in China next quarter than risk $96M in bond money to activate the injunction on the Galaxy Nexus which is 8 months old (ancient in Android years). Only advantage to Gnex injunction is that Apple should be able to get the same injunction on the GS III based on the ruling.

Looking forward to millions of main-land Chinese customers buying the iPad.

It's obvious that delaying the introduction of the iPad into China was going to cost Apple a lot more money. It may not have been right to pay them off, but in business, sometimes you have to accept that fairness isn't always the biggest concern.

As a shareholder myself, I trade and currently holding a long position in AAPL, I would have actually preferred that Apple have buried these guys. They would have spent only 1/3-1/2 of that $60 million. Which is still too much considering that Proview sold and gave up any claim to "iPad" long ago.

But you guys do have a point. It is far more important and profitable for Apple to get the iPad selling in China than to drag out this particular case. It's stupid that the Chinese courts sided with Proview to begin with. I just wish they would have lowballed them even more. What ever, Proview is still in the hole for $340 million lol.

Let's see how this issue with Samsung unfolds....

Factory to build what? There's not much you can do with $60m. It cost Intel and other fab companies $5-10 billion just to build a state of the art chip foundry.

It cost $ 60 million or more just to get the process started, but Apple'd need to spend $10 or more billion of dollars to start building one factory. Why would they do that when they can just pay less to have others build it for them?

A factory to manufacture their products, durrrrr.

Apple could have used that $60 million towards the purchase and upgrade of abandoned factories in places like Detroit, Michigan. Then put the kind people in the surrounding areas back to work. Jobs are desperately needed here at home if you haven't noticed.

This attitude of finding someone else who can do it for less is the race to the bottom we're suffering in this country.

 

[Laird Knox]

I take it you haven't been following the story?

Proview made and sold a device that looked very much like the original iMac. It was called the iPad (Internet Personal Access Device).

Long after Proview stopped selling their iPad an Apple shell company purchased the worldwide rights to the iPad trademark from Proview.

When Proview found out that Apple was the buyer and saw the sales of Apple's iPad skyrocket they said they didn't sell the rights to the iPad in China.

Proview files a lawsuit for $2 billion.

No matter how you slice it, Proview's actions were pretty shady. On the other hand Apple was a bit sloppy in crossing the i's and dotting the t's since this wasn't simply thrown out of court.

In any case it is a good lesson for any business that operates internationally.

TIMELINE:

Jan 2000: Proview Technology Co, Ltd, which is based in the southern city of Shenzhen, registered the iPad trademark. ..the rights to its use in China

Late 2010: [ 10 years later ] Apple's use of the iPad name (in China)

Now, unless Proview had insider knowledge of an "iPad" in the works at Apple, I'd say they had every legitimate right under trademark law to defend their trademark/IP within China.

You want to play (and make bucket loads of money) in someone else's patch? then you have to pay out. And play by their rules.

In the big picture, $60M is peanuts for . Everything is relative.

I'd be interested to know if ProView had a legitimate trading business using the iPad name. ie. actually marketing and actively selling products/services from 2000 onwards. And had a brand/market presence in China.

Otherwise it could be ruled by some courts in the Western hemisphere at least that its right to legitimacy could be argued. Nevertheless it seems that it was sheer luck/coincidence, or a leak within ? Who knows..

But they may have had plans/intent to use the name to sell whatever. Maybe a touchscreen LCD/TV interactive screen for cars and could have made millions from it.

It is one of the top five in the world monitor manufacturers, so does make you wonder if they caught wind of the iPad name before  had a chance to file the paperwork in China for the ™

Missed that. Yeah its butt ugly. But still doesn't negate the fact they had prior registration and right to the trademark.

 

[Sensation]

Apple tried to steal the name and got caught, not sure how you can defend such dirty actions.

 

[ownamac]

Chinese law. Proview's case in the US was thrown out.

Perhaps simply the cost of doing business in China where this seemingly unfair legal settlement cost could be rationalized against cheap manufacturing there.

 

[Windlasher]

I am glad that the case has been finally settled.

I hope that Apple will not transfer the burden of $60 millions onto its customers in China!

YEP - RAISE the price of the iPhone and iPad in China by 10 dollars and they will have that back in no time. Good For Apple.

 

[sparkie7]

I take it you haven't been following the story?

Proview made and sold a device that looked very much like the original iMac. It was called the iPad (Internet Personal Access Device).

Long after Proview stopped selling their iPad an Apple shell company purchased the worldwide rights to the iPad trademark from Proview.

When Proview found out that Apple was the buyer and saw the sales of Apple's iPad skyrocket they said they didn't sell the rights to the iPad in China.

Proview files a lawsuit for $2 billion.

No matter how you slice it, Proview's actions were pretty shady. On the other hand Apple was a bit sloppy in crossing the i's and dotting the t's since this wasn't simply thrown out of court.

In any case it is a good lesson for any business that operates internationally.

Nah, haven't been following it.

Are you saying Provie had registered the iPad name worldwide? ie. in many countries around the world, and  bought these out?

Seems to me the paperwork/evidence suggested the iPad TM in China was not sold comprehensively to . Otherwise 's lawyers would be all over it.

 

[Wondercow]

I take it you haven't been following the story?

Proview made and sold a device that looked very much like the original iMac. It was called the iPad (Internet Personal Access Device).

Long after Proview stopped selling their iPad an Apple shell company purchased the worldwide rights to the iPad trademark from Proview.

When Proview found out that Apple was the buyer and saw the sales of Apple's iPad skyrocket they said they didn't sell the rights to the iPad in China.

Proview files a lawsuit for $2 billion.

No matter how you slice it, Proview's actions were pretty shady. On the other hand Apple was a bit sloppy in crossing the i's and dotting the t's since this wasn't simply thrown out of court.

In any case it is a good lesson for any business that operates internationally.

Apple had all of their letters drawn correctly. A Hong Kong court had already ruled on this issue; their conclusion was that Proview sold the name to Apple as Apple claimed and that Proview colluded to extort more money from them.

----------

Apple tried to steal the name and got caught, not sure how you can defend such dirty actions.

See above. Perhaps you should educate yourself about an issue before making yourself look like a fool.

----------

Nah, haven't been following it.

Are you saying Provie had registered the iPad name worldwide? ie. in many countries around the world, and  bought these out?

Seems to me the paperwork/evidence suggested the iPad TM in China was not sold comprehensively to . Otherwise 's lawyers would be all over it.

See above.

 

[nervouk]

Seems it was just a shakedown all along, by a business owner with a few good connections in the Party, but not good enough to get the full amount he needed to get completely out of trouble.

He'll probably use the $60 million to pay off his debts to those 'good connections' and hope the others aren't resourceful enough to track him down -- or he'll spent the next 100 years at the bottom of a river with a concrete block tied to his neck.

 

[mentaluproar]

I can't believe they settled this. Apple was totally in the right here, and could have easily crushed proview.

 

[Laird Knox]

Nah, haven't been following it.

Are you saying Provie had registered the iPad name worldwide? ie. in many countries around the world, and  bought these out?

Seems to me the paperwork/evidence suggested the iPad TM in China was not sold comprehensively to . Otherwise 's lawyers would be all over it.

Yes, Apple supposedly bought out the rights from Proview. They obviously didn't do their homework well enough if Proview was able to later say they didn't include the Chinese rights. Up to that point it was a pretty typical business transaction.

----------

Apple had all of their letters drawn correctly. A Hong Kong court had already ruled on this issue; their conclusion was that Proview sold the name to Apple as Apple claimed and that Proview colluded to extort more money from them.

True enough. I was just trying to give the Chinese court the benefit of doubt that there might be some small loophole for Proview to wiggle through. After all, IANAL and I haven't read the contracts.

 

[JayLenochiniMac]

The extortion worked.

 

[sparkie7]

Apple had all of their letters drawn correctly. A Hong Kong court had already ruled on this issue; their conclusion was that Proview sold the name to Apple as Apple claimed and that Proview colluded to extort more money from them.

The courts in China laugh at Hong Kong. China rules HK, they dictate the rules and with $M's on the table the major players in China call all the shots. Legal or not. Right or wrong.

 

[Since OS-6]

Funny how Taiwan is a part of China until it's convenient ( for " China " ) for it not to be !

 

[nervouk]

I can't believe they settled this. Apple was totally in the right here, and could have easily crushed proview.

60 million is pocket change to the largest market-cap company in the world; it was probably worth it to make the guy go away quickly.

In fact I'm sure they threw the money on the ground and laughed as they stood around watching him scramble to pick it up, knowing he was still $340 million up the creek.

 

[doboy]

At least it's over and Apple can start selling iPad 3 in China. Apple couldn't risk it with the corrupt Chinese court.

 

[louiek]

Even idiots can luck into money, especially in this litigious world.

I wonder what they will burn that 60m on?

Judges and other government officials. They sure won't see all of it.

 

[benjo765]

$60 million is a lot for a trademark troll.

Pot - iKettle anyone?

 

[Fruit Cake]

I think apple have made and wil make a heck of slot more then 60million out of china. Consider it an "investment".

 

[Sensation]

Typical Apple thieving scum.

 

[YGAB]

Apple just got punked... if the case had taken place in any other market in the world that wasn't deemed the Great Promise Land for Apple, Mr. Cook & co. would not have succumbed so easily to the bullies of Proview and their connections in China.

 

[jacobj]

No wonder Proview is bankrupt, they are a bunch of idiots.

There is an element of truth here. However the value of an item is dependent on how much the buyer is willing to pay. In this case Apple were deceitful by hiding their real identify. I understand why they did it: if leaked that they were buying the name the truth re their intentions for a new device would be out. However the consequence of that action was that the actual owner of the name did not have clarity as to the value of their goods.

I have heard it argued that this is tough luck on the seller. However I believe that the recent doings of banks in the UK have shown us that such immorality is not a good thing.

Apple have now paid what the name iPad was probably worth to them before product launch an that seems fair to me.

With regard to them being trolls I am not sure that stacks up. If their intention had been to scam Apple for more money, then why did they sell it for so little to a company that was not Apple as far as they were concerned?