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Proview claims possible $38M fine in Apple lawsuit

updated 11:20 am EST, Tue February 7, 2012

Apology, iPad embargo among demands

A lawyer for Proview Shenzhen, Xie Xianghui, is claiming that a court in the Xicheng district of Beijing is prepared to "slap Apple with a 240 million yuan ($38 million) fine," according to the Global Times. The Xicheng district administration, though, is refusing to comment. "It is still under investigation, so no official comments on the case can be made yet," a media officer with the administration states. The China Daily meanwhile quotes Xie as also demanding an apology, and an injunction against the sale and marketing of iPads in China.

At the core of the dispute is a 2006 agreement in which Apple bought the iPad trademark from Taiwan's Proview Electronics for $55,000, by way of a front business known as IP Application Development. Proview says, though, that Apple didn't win the rights to the Chinese trademark, since those were owned by Proview Technology in Shenzhen, a subsidiary of the Hong Kong-based Proview International.

Last year a trademark infringement lawsuit was filed against Apple, seeking 10 billion yuan in damages, or about $1.6 billion. Apple tried to countersue, claiming it did have ownership of the trademark, but the courts ruled in Proview's favor. Since then Apple has decided to appeal the case.

Another Proview lawyer, Xiao Caiyuan, argues that Apple will likely lose the appeal, and that Proview has "prepared well for a long-term legal battle." The company is thought to be financial trouble though, and may need money from Apple to help pay off debts.

By Electronista Staff
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  1. Eldernorm

    Fresh-Faced Recruit

    Joined: Sep 2007


    China, just so wrong

    So in China, its ok for one part of a company to sell something that belongs to another part of the company and then later sue cause the first part of the company did not have rights to sell that item.

    Maybe Apple could sue the first part of the company 5x the lawsuit for damages and known illegal actions... Of course in China, what the government wants, the government gets.

    This could be interesting.

  1. jmonty12

    Fresh-Faced Recruit

    Joined: Jun 2003


    They sued in 2010?

    So what, they only finally noticed in 2010 that this thing called an iPad existed and was not made by them? What a bunch of BS. So it works like this:

    1) Fake-sell your trademarked name.
    2) Wait for the product with that name to be hugely successful.
    3) Sue for damages.

  1. Droid-Fan

    Fresh-Faced Recruit

    Joined: Feb 2012


    This lawsuit

    sounds sketchy to me.

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