After two significant legal victories against Samsung last week, things did not go as smoothly for Apple in a Chinese courtroom.
The Associated Press reports that Apple and near-bankrupt Chinese company Proview Technology have reached a settlement in a legal dispute over the ‘iPad’ trademark in China.
Apple will pay $60 million to Proview for complete rights to the trademark, which is a much higher figure than originally expected.
“The iPad dispute resolution is ended,” the Guangdong High People’s Court said in a statement. “Apple Inc. has transferred $60 million to the account of the Guangdong High Court as requested in the mediation letter.”
Proview Technology rightfully held the ‘iPad’ trademark in China until Apple purchased the moniker under a shell company in 2009, but a Chinese court ruled that Apple still did not have permission to use the moniker in the world’s most populous country.
Proview claims that since Apple’s so-called “dummy corporation” IP Application Development, or IPAD, bought the ‘iPad’ trademark from its Taiwanese division of the company, there is no way that sale could be legitimate since it is actually the Chinese arm of Proview that owned the name in China.
Proview Technology has been complaining about Apple’s usage of the ‘iPad’ trademark in China since late 2010, but its efforts to sue Apple have largely been seen as a way for the Chinese company to take advantage of Apple’s large cash sum since it is nearly bankrupt and has to pay off its debtors. Despite winning $60 million in its legal dispute with Apple, it is still believed that Proview Technology might remain in bankruptcy.