Chinese Firm Demands $1.6 Billion from Apple in iPad Trademark Dispute

Apple is embroiled in a trademark suit more than ownership of the iPad name, and the battle has taken a dark turn for Cook and company. Apple may have to shell out anywhere from $ 38 million to $ 1.6 billion if Chinese courts don’t rule in its favor — and it’s seeking like they won’t.

In 2006, Taiwanese business Proview Electronics agreed to sell the iPad name (which it had registered in 2000 and 2001 in Taiwan and China) to Apple for $ 55,000. But Apple only secured the rights to the iPad name from Taiwan and not China, where the name is nevertheless owned by a subsidiary named Proview Technology, and is utilized in several of its merchandise.

Apple utilised a U.K.-based business referred to as IP Application Development to preserve the transaction from receiving public attention. In truth, Proview’s chairman had no idea in 2006 that IP Application Development had any ties to Apple. But once it became clear that Apple was the organization that bought the trademark in Taiwan — and failed to do so in China — factors got ugly.

“It is arrogant of Apple to just ignore our rights and go ahead promoting the iPad in this industry, and we will oppose that,” Proview chairman Yang Rongshan told the Monetary Instances back in 2010. “Besides that, we are in huge monetary difficulty and the trademarks are a important asset that could support us sort out portion of that trouble.”

But, hey, at least Proview is truthful about its motivations.

Proview began threatening to sue Apple in October 2010, and ultimately followed through in 2011. Apple counter-sued, arguing it rightfully owned the iPad name, but lost that case. Apple has appealed, and according to the Xicheng district court administration, the case is “still under investigation.” The outlook for Apple winning this 1 isn’t good, even though.

Proview has now filed lawsuits in the Chinese cities of Shenzhen and Huizhou in order to stop sales of Apple’s tablet.

“We ask the court to stop promoting and marketing and advertising for Apple’s iPad in China,” Xie Xianghui, Proview Technology’s lawyer, stated. The organization is demanding compensation totaling in between $ 38 million and $ 1.6 billion. “We also demand an apology.”

Even though this trademark debacle shouldn’t stymie the fortunes of the iPad 3 in the U.S. and most of the globe, it will probably hinder Apple’s momentum in China, especially with the opening of new Apple retailers. And that is going to hurt: At Apple’s most current earnings call, CEO Tim Cook stated, “China is an incredibly critical marketplace for us.”

At least Apple has a whopping $ 96.7 billion in the bank, so it shouldn’t hurt that significantly.