We have been hearing quite a bit about the case between Proview and Apple over the iPad trademark in China over the last few weeks, and now Proview is attempting to take the worldwide rights for the iPad name from Apple.
Proview sold the rights to the iPad name to a company called IP Application Development Limited, or IPAD, which was basically a shell company used by Apple and their agents to purchase the trademark.
Last week we heard that Proview was suing Apple in the US, claiming that Apple used deception to buy the iPad trademark from Proview, and now they have revised the lawsuit claiming that Apple used fraud and unfair competition to purchase the trademark.
Apple used a company in the UK called Farncombe International to obtain the trademark on their behalf, and it is this company that apparently set up the shell company called IP Application Development Limited.
The Background of the Dispute
The dispute between Proview and Apple dates back to 2009 when Apple, through its shell company IP Application Development Limited, acquired the rights to the iPad trademark from Proview’s Taiwanese affiliate. Proview Technology, a subsidiary of Proview International Holdings, originally registered the iPad trademark in several countries, including China, as early as 2000. Apple’s acquisition of the trademark was intended to clear the way for the launch of its now-iconic tablet device, the iPad, which debuted in 2010.
However, Proview Shenzhen, a separate entity from Proview Taiwan, claimed that it still held the rights to the iPad trademark in China. This led to a series of legal battles in Chinese courts, where Proview argued that the sale of the trademark to Apple was invalid and that it retained the rights to the name in China. The Chinese courts initially sided with Proview, leading to a temporary ban on the sale of iPads in some parts of China.
Legal Strategies and Implications
Proview’s legal strategy has been multifaceted. In addition to the lawsuits in China, Proview has sought to challenge Apple in the United States. The revised lawsuit in the US claims that Apple engaged in fraudulent practices and unfair competition by using a shell company to disguise its true intentions. Proview alleges that Apple’s actions were deceptive and that they were misled into selling the trademark at a lower price than it was worth.
The implications of this case are significant for both companies. For Apple, losing the rights to the iPad trademark in China or globally could have severe financial and branding repercussions. China is one of Apple’s largest markets, and the iPad is a crucial product in its lineup. For Proview, a victory could mean a substantial financial windfall, either through damages awarded by the courts or a settlement with Apple.
This case also highlights the complexities of international trademark law and the strategies companies use to acquire valuable intellectual property. The use of shell companies to purchase trademarks is not uncommon, but it can lead to legal challenges if the original owners feel they were deceived or misled.
Source The Next Web
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