Search
Close this search box.

Apple Pays $60 million for iPad™ in China

ipad dispute

Share This Post

Apple reached into its deep pockets and pulled out a cool $60 million to pay bankrupt Chinese manufacturer Proview Holdings $60 million for the iPad trademark in China. It turns out Apple had hired a U.K. consultant to buy up rights through IP Application Development Ltd., the U.K. company set up by Apple to acquire the worldwide trademarks for the iPad trademark.

Apple had originally bought the global rights to the “iPad” from Proview’s Taiwanese affiliate for $55,000 (£35,000), and apparently believed those rights included all of mainland China. Proview had the mark registered in China since 2000. Proview claims Apple also duped them when Apple claimed iPad was an abbreviation for the U.K. holding company (IPADL). Apple’s representatives may have been equally out-witted since the Chinese firm had argued that its affiliate did not have the right to sell the iPad name rights to China, one of the fastest-growing markets for Apple’s products. Clearly, there was some legal merit to this claim.

While few companies can cough up $60 million for one trademark, it’s a valuable lesson and good reminder for all brand owners: When establishing rights in a new brand, make certain you perform necessary searches, and establish or acquire the legal rights to use and register the mark in the territories in which products will be sold. This is most important in foreign countries, where, unlike the U.S., rights belong to the first to register, not the first to use the mark.

Secondly, due diligence in any transaction to purchase assets of another company is required, namely to ask for proof that the Seller owns what they say they own, and that they have the legal right to transfer what they say they can transfer. Apple’s reps seem to have overlooked this basic rule.

For more information about Apple’s settling China iPad trademark dispute for $60m kindly visit BBC News!

Categories
Archives
Check List Note Pad with Trademark Symbol

Brand Going Global?

Thinking of registering a global trademark for your business? Get your free step-by-step guide to brand protection in international markets, prepared by a leading international trademark attorney today.

Privacy Policy: We hate spam and promise to keep your email address safe.

Nine Costly Myths About Trademark Registration

CLICK BELOW TO LEARN THE OTHER SIX

Privacy Policy: We hate spam and promise to keep your email address safe.

It’s what you didn’t know to think about that gets you every time!
— FREE CONSUMER GUIDE —

Guide to Trademark Registration Services

Get this FREE GUIDE today, and you will learn:

  • 6 Reasons your application will be refused
  • 7 Must-ask questions when hiring non-legal filing services
  • 6 Registration rip-offs to avoid



Privacy Policy: We hate spam and promise to keep your email address safe.

Where should we send the guide?


Privacy Policy: We hate spam and promise to keep your email address safe.

Follow the Rules of Trademark Use in Marketing and Media to Maintain Trademark Rights

Cheryl’s Brand Owners’ Guide to Trademark Use reveals how to establish lawful trademark use necessary to register a trademark and to sustain trademark protection.

Privacy Policy: We hate spam and promise to keep your email address safe.

Can You Protect What You Select?

MAKE A SMART CHOICE

Hint—Five choices and two are really bad. Enter your email and avoid the bad guys.

Privacy Policy: We hate spam and promise to keep your email address safe.

Start Your Trademark Journey the Right Way

— GET 3 FREE CHAPTERS —

Registered Trademark - Amazon Bestseller
Thinking of registering a trademark for your business?

Avoid common mistakes when you download three chapters from my best-selling book—totally free.

Privacy Policy: We hate spam and promise to keep your email address safe.

You are almost there!

Enter your details below and I will send you a FREE copy for

Free Guide to Brand Name Selection

Skip to content