Apple Nearing iPad Trademark Settlement iPad商标权纠纷和解渐行渐近

By newsdoug on May 11, 2012

UPDATE: Since first publishing this commentary yesterday, it has come to my attention that Apple’s offer for the iPad name is actually 100 million yuan, or about $16 million, which is obviously far less than the $100 million that I wrote in my commentary. This shows that clearly there is still quite a distance between the amount that Apple is willing to offer Proview, which is reportedly seeking a minimum asking price of $400 million (that figure was correctly identified as US dollars) for the iPad name. I suspect this gap is Apple’s way of saying it won’t give in to Proview’s high demands, but still expect the 2 sides will settle the dispute, because that’s what China wants. Given the gap, however, a settlement may take a bit longer, perhaps a couple of months, and the final amount could be closer to $100 million.

The latest in a steady string of news leaks indicate a settlement may be near in the ongoing dispute between Apple (Nasdaq: AAPL) and a small near-bankrupt company that formally owns the rights to the iPad trademark in China. In the latest twist, Chinese media are citing unnamed sources saying that the near bankrupt company, called Proview International (HKEx: 334), has rejected Apple’s offer to buy the iPad name in China for $100 million. (Chinese article) This latest report comes after Proview’s lawyers have commented regularly on negotiations involving the trademark, and I have no doubt that this new comment is also coming from them even though they have chosen to remain anonymous this time. Previously, Proview’s lawyers have indicated they would like to get at least $400 million for the valuable trademark, already a sharp reduction from the $1 billion figure that was being cited in some earlier reports but still quite high for a trademark that Apple believes it already legitimately purchased several years ago in a transaction that was never formally consummated for technical reasons. Apple refuses to comment on the case, but it’s clear from all the reporting that the US tech giant has softened its original stance, which saw it refusing to negotiate a settlement and instead preferring to let the Chinese courts decide the matter despite losing an initial judgment in the case late last year. (previous post) While there is clearly still some distance between Proview and Apple — $300 million to be exact — it does seem like the gap between the 2 sides is rapidly narrowing and that they will eventually reach a settlement in the next few weeks, probably in the middle somewhere at around $200 million. So why is Apple, a company famous for not yielding on any legal matters when it believes it is right, taking the unusual step of negotiating a settlement in this case? For people who have followed the matter closely, the answer seems obvious: because China wants to see the 2 sides reach a settlement, which would remove the huge pressure now being felt by an inexperienced Chinese legal system that would inevitably draw criticism no matter how it ruled in the case. A ruling in Apple’s favor would draw criticism from people saying the courts were yielding to pressure from a major multinational company; a ruling for Proview would send a chill through the global business community, which would see such a judgment as a sign that China is inherently biased towards its own domestic companies. Faced with such a no-win situation, China wants the 2 companies to settle the matter on their own in a way that will seem fair to everyone. Apple normally ignores such pressure, preferring to stand on principles. But in this case it has to tread very carefully, as its growth in China has exploded in the last year on the popularity of its iPhones and iPads, with the Greater China market accounting for a fifth of its global sales in its latest quarterly report. (previous post) Considering all those factors and the latest reports, Apple really has no choice but to settle in this matter, which is likely to happen within the next month. Such a move will be good for everyone, allowing Apple to finally sell its newest iPad in China and focus its attention on developing a market that will be key to maintaining its growth for the next 2 years.

Bottom line: The latest signals from talks to settle a trademark dispute over the iPad name in China indicate a settlement is likely in the next month, with Apple likely to pay $200 million for the name.

Enjoy this blog? Please spread the word :)