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Perhaps we will see the iPad become the aPad instead. One thing’s for sure, Apple won’t go down without a fight. Trademark agreements can be tricky, just ask Apple Inc. who thought they bought the rights to the “iPad” trademark in 2009, only to find they’d been duped. What? Apple Inc., the technology giant, duped? Yep, duped. Now Proview Technology, Shenzhen in China wants Apple to pay them $1.6 billion for allegedly infringing on their “iPad” trademark. To understand how something like this could happen to Apple Inc., you need to know how Proview Technology is organized and what happened back in 2000. Proview’s mother company, Proview International Holdings Ltd., headquartered in Hong Kong, has many subsidiary companies with the name Proview Technology. Back in 2000 its Proview Technology subsidiary in Taiwan registered the name “iPad” in several different countries. In 2001 the Proview Technology in Shenzhen registered the name “iPad” in China. Because the “iPad” name was never successfully used, the Proview Technology, Taipei subsidiary sold its global rights to a company in Britain. In 2009 Apple bought the “iPad” trademark from the British company for $54,616. For the past decade, Proview Technology, Shenzhen and Apple Inc. have sued each other, attempting to prove once and for all who actually owns the “iPad” trademark. Proview asserts that Apple Inc. can’t sell what doesn’t belong to them, that they, Proview, is the one and only owner of the “iPad” name in China. Further, Proview argues that they were not the same entity who sold to Apple and therefore the sale wasn’t valid. While this argument is both legally and technically solid, Proview Technology, Shenzhen is still a part of Proview Technology, the same company, but in a different region. Unfortunately, this mistaken identity has the potential of becoming one costly mistake for Apple Inc., especially since they sold nearly 4.1 million iPads in China last year, or 70% of all tablet computers sold in the country, and Proview Technology, Shenzhen is in debt up to its eyeballs. Like Kodak’s intellectual property lawsuit against Apple and Yahoo’s lawsuit against Facebook, the suing party, Proview Technology in this case, is in desperate need of money. Proview is so far in debt that it’s at risk of being removed from the Hong Kong stock exchange. When its computer monitor business fell apart in 2008, it depended on its production of LED street lights. But that wasn’t enough to sustain them and now Proview Technology, Shenzhen faces bankruptcy, owing one of its creditors, Fubon Insurance, $8.68 million. For Proview the stakes couldn’t be higher and the $1.6 billion they are demanding from Apple Inc. would certainly help with paying their overdue bills. And the situation is only getting worse. In Shijazhuang and Zhengzhou officials have seized iPads believing them to be illegal merchandise. But things are different in Shanghai where sales continue in its three large Apple stores. Here the Pudong District Court denied Proview’s request for an injunction. However, lower courts in Hong Kong and Guangdong are siding with Proview. For now, two questions remain. First, does Apple truly value the “iPad” name and intellectual property as a whole? Fighting for intellectual property isn’t new to Apple. More recently, they’ve warned a Chinese luggage vendor to discontinue using its “EPAD” trademark because it’s too similar to “iPad.” Apple Inc. has to set a precedent and not succumb to Proview’s monetary demands or more companies like Proview will bleed Apple dry. The second question is whether or not Apple will change the name of the iPad in China or worldwide? Resources: Had Apple consulted with a trademark lawyer, they probably could have avoided most of these situations. Having an attorney like that on staff or at least on call will keep you out of a simliar situation.
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