Apple Pays $60 Million to Settle China iPad Dispute

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SHANGHAI. - On Monday, Apple paid Chinese company Proview $60 million in a trademark dispute.

According to the dispute, the Chinese company Proview filed a suit against Apple over the name 'iPad' to which it had bought the rights in 2000. Apple bought the worldwide rights to the name in 2009 and paid Proviews' affiliate company $55,000 for its purchase. Proview claimed that the affiliate had no authority to sell the name.

After a protracted tussle the two finally settled the dispute with Apple paying the almost bankrupt firm $60 million. The case was settled on the urging of Guangdong High People's Court, which released a statement confirming the settlement, "The iPad dispute resolution is ended," the Guangdong High People's Court said in a statement...Apple Inc. has transferred $60m to the account of the Guangdong High Court as requested in the mediation letter," as reported by BBC News.

In light of the lawsuit, Proview had the iPads removed from the market; as a result apple lost significant sales in the Chinese market, which is one of the biggest markets for Apple products.

Andrew Malloy of Frost & Sullivan, a global industry consultancy firm, told BBC News that the settlement was a wise choice on the part of Apple because "When Apple is on the receiving end of a litigation, especially in China, it is a sensible move for them to settle it and move on."

Proview has also filed a lawsuit against Apple for the same reasons in the U.S., but experts say that the company is likely to withdraw its case because of this settlement.

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