As a result Apple may have to sell the iPad under a new name in China or pay up to $1.6 billion and purchase the trademark from a Chinese tech firm as a result of the verdict, official media here reported today.
A Chinese court rejected the lawsuit, Proview Taipei registered the ‘iPad’ trademark in a number of countries and regions as early as 2000 and Proview Shenzhen registered the trademark on the Chinese mainland in 2001, long before Apple launched the iPad.
Apple bought the rights to use the trademark from Proview in 2009 for $55K, after Proview’s Taiwan based unit sold the trademark to a company called IP Application Development, that company transfered the trademark to Apple.
Proview Shenzhen reserved the right to use the trademark on the Chinese mainland, and was not included in the agreement because the company’s Taiwan unit did not own it at the time.
The court agreed, ruling that the Shenzhen-based company holds the rights to the iPad trademark in the Chinese market.