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Friday, 09 December 2011 08:50

Apple facing massive compensation bill for using iPad name in China

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Apple could face a charge of up to US$1.6 billion if it wants to continue using the iPad name for its popular tablet devices in mainland China after a significant copyright infringement court loss to a Hong Kong LCD maker.

 

According to a report in the Chinese state-owned Xinhua news agency, Proview International Holdings, which registered the iPad name in both Taiwan and mainland China in 2000 and 2001 respectively, had sold the Taiwan rights to Apple in 2009 for a mere US$54,000 but not the China rights.

Strangely, Apple still attempted to sue Proview for trademark infringement in China, claiming the 2009 sale covered both Taiwan and China.

The Municipal Intermediate People's Court in Shenzhen, however, rejected Apple's case.

After winning the case, financially struggling Hong Kong-based, Proview Technology, which owns the iPad trademark for China, will now seek compensation from Apple for use of the name.

Proview is under debt restructuring administration by a Chinese management consultancy, which now wants to make Apple pay for what will be considered its infringement of Proview's iPad trademark in China.

Hejun Vanguard Group, the Chinese management consultant, is quoted as saying that Apple's copyright infringement is clear and that it has been selling iPads in China since September last year in defiance of the laws. The more iPads that Apple sells the more compensation it will have to pay Proview, a Hejun spokesman said in Xinhua.

Hejun is reportedly seeking $1.6 billion from Apple for the unfettered right to use the iPad trademark.

Apple, however, has the right of appeal.

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Stan Beer

Stan Beer has been involved with the IT industry for 39 years and has worked as a senior journalist and editor at most of the major media publications, including The Australian, Australian Financial Review, The Age, SMH, BRW, and a number of IT trade journals. He co-founded iTWire in 2004, where he was editor in chief until 2016. Today, Stan consults with iTWire News Site /Website administration, advertising scheduling, news editorial posts. In 2016 Stan was presented with a Kester Lifetime Achievement Award for his contribution to Australian IT journalism.

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