HONG KONG — A Chinese provincial court said on Monday that Apple had settled a lawsuit thereby agreeing to pay $60 million for the legal rights to use the iPad trademark in China, according to Xie Xianghui, a lawyer for the Chinese company involved.
“It was done last week and it was confirmed by a ruling by the high court,” which was issued on Monday morning, said Mr. Xie, a lawyer at the Grandall Legal Group in Shenzhen, China, which represented Shenzhen Proview Technology.
It should take only a week or two for China’s national trademark authority to transfer the iPad trademark in China to Apple, Mr. Xie added.
Mr. Xie said that Proview Technology did not regard the settlement amount as especially large, “but it is O.K.”
Apple had been in settlement negotiations this spring with the Chinese subsidiary of Proview Technology of Taiwan in the long-running trademark dispute. Apple did not immediately respond on Monday morning to requests for comment.
According to testimony in the legal fight, Apple retained British lawyers several years ago to set up a company, IP Application Development, to buy up rights to the iPad name around the world. Apple paid only £25,000 to Proview Technology for the Taiwanese company’s iPad trademarks in various countries.
But when Apple introduced the iPad with immediate success, Proview Technology said that the transaction had not included the trademark in China, which was held by Shenzhen Proview Technology, its mainland Chinese subsidiary. The Shenzhen subsidiary, located in Guangdong province in southeastern China, filed a trademark infringement case against Apple in the Guangdong provincial court
The Guangdong High People’s Court in Guangzhou, a metropolis of 12 million people that is the provincial capital, said on Monday that the two sides had reached the settlement and that this would end the litigation. China has emerged as one of Apple’s largest markets. — NYT Times