Apple Could End Up Paying $38 Million For Using iPad Name In China

The trademark for the name ‘iPad’ in China isn’t owned by Apple, and the company is currently engaged in a lawsuit with Proview, who own the trademark in China.

Proview sold a number of ‘iPad’ trademarks to Apple in other countries, although they maintain that they never sold the iPad trademark to Apple in China, and it could end up costing Apple around $38 million.

Proview are waiting a decision from the court in China to see whether the $38 million fine will be awarded against Apple, the fine was put on hold last year as Apple were appealing the decision.

“Proview made a formal complaint to the Xicheng administration in 2011 and they had planned to slap Apple with a 240 million yuan ($38 million) fine, but it was suspended after Apple’s objections,” said Xie Xianghui, a lawyer from the Shenzhen branch of Grandall Law Firm. 

Background of the Dispute

The dispute between Apple and Proview dates back to 2009 when Apple, through a UK-based subsidiary, purchased the rights to the ‘iPad’ trademark from Proview’s Taiwanese affiliate. However, Proview Technology Shenzhen, a subsidiary of Proview International Holdings, claimed that the sale did not include the rights to the trademark in China. This discrepancy has led to a prolonged legal battle, with Proview asserting that they still hold the rights to the ‘iPad’ name within Chinese borders.

Proview, once a major player in the monitor manufacturing industry, has faced financial difficulties in recent years. The company sees the trademark dispute as a potential lifeline, hoping to leverage the situation to alleviate some of its financial woes. On the other hand, Apple, which has invested heavily in the Chinese market, views the resolution of this dispute as crucial to its continued success in the region.

Potential Implications for Apple

If the court rules in favor of Proview, Apple could face significant financial and operational repercussions. The $38 million fine is just one aspect of the potential fallout. Apple might also be forced to rebrand its iconic tablet in China, a move that could confuse consumers and disrupt its marketing strategies. Additionally, the case could set a precedent for other trademark disputes in China, potentially leading to more legal challenges for Apple and other international companies operating in the country.

Apple’s legal team has argued that the purchase agreement with Proview’s Taiwanese affiliate included the rights to the ‘iPad’ trademark in China. They contend that Proview is attempting to exploit a loophole in the agreement to extract additional funds from Apple. The outcome of this case will hinge on the court’s interpretation of the original purchase agreement and the validity of Proview’s claims.

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