Apple Offers to Settle iPad Suit by Shenzhen Proview
Apple has offered to pay to settle the suit filed by Shenzhen Proview to protect its trademark in China of the iPad name at a time when Apple is eager to begin selling its tablets in the massive China market, said a lawyer representing Proview.
“Right now, there is still a big gap between the two sides on the settlement amount,” said Xie Xianghui, one of the lawyers representing Proview Technology (Shenzhen) Co.
Xie did not reveal the amount of Apple’s settlement offer or when it was made.
Apple’s Beijing spokeswoman Carolyn Wu declined to comment on Xie’s statements.
The Taipei subsidiary of the Hong Kong-based parent, Proview International Holdings, registered the iPad trademark in a number of countries and regions beginning in 2000.
The trademark was registered in mainland China in 2001. Apple bought the rights to the iPad trademark from the Taiwan-based Proview subsidiary in 2009. Shenzhen Proview claims that the agreement between Apple and Taiwan Proview doesn’t apply to the use of the trademark in China because it is a different legal entity.
Apple has appealed last year’s trial court ruling in favor of Shenzhen Proview’s position. Apple’s appeal was heard on February 29 by the Guangdong High People’s Court but the court has not yet issued its ruling. Instead it has been prodding the parties to come to a settlement, according to Proview’s lawyer.
Apple has a strong incentive to acquire a clear right to the iPad trademark because China accounted for 16% of its global revenues during the third quarter of 2011, about three times as much as a year earlier. It has not yet begun selling the iPad in China though it was released in the US on March 8. The product is in heavy demand in China, with many Chinese buying them from Hong Kong and other overseas market.
But Shenzhen Proview’s settlement demand is likely to be high. Currently it is in bankruptcy and owes more than $400 million to eight banks in China. Its lawsuit against Apple, which enjoys a high probability of success in China, is Shenzhen Proview’s single biggest asset.