by Holly Shoemaker
Apple’s
legal battle with Proview Technology, a Chinese-based technology company, has
come to end. Today, a Chinese court has confirmed that Apple has paid Proview
Technology $60 million to settle the dispute over who owns the right to the iPad name.
While a
lawyer for Proview said the company hoped for $400 million, Proview really had no
choice but to settle. The company faces a growing amount of debt.
Overview of Dispute
Proview
claimed it trademarked the IPAD, not iPad in 2001. Apple paid the company $55,000
for the name. However, the Court did not recognize the payment and ruled last
year that Proview still owned the name. Proview also tried to get iPads removed
from stores in China.
What Settlement Means for iPad Market
China, with a population of 1.3 million people, represents Apple’s second-largest market behind the United States. Now that both sides
have removed a legal obstacle, Apple has the opportunity to bring the new iPad,
or the iPad 3 for those who cannot part with the old naming convention, to China. The iPad 2 was in demand, and earlier
this year China led the way in app sessions and new activations.
Concluding Thoughts
For some,
$60 million may seem like a larger sum of money than Apple wanted to pay.
However, for Apple, the price does not seem that high given the potential
windfall that will come with selling the new iPad in China.
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