Apple settles for iPad patents in China, pays $60 Million to Proview Shenzhen in a settlement – Part 1

Apple has finally reached a settlement agreement with Proview Shenzhen in China on the patent rights over its flagship tablet’s brand name, iPad. The settlement set the American company back $60 Million to commence sales of the tablet in China.

The two companies were in court for the last two years over the brand name rights ownership in China. Apple had purchased the patents to iPad in 2009 and Proview Holdings were paid in tune of $55,000 in the year for the sale of the tablet in China. However, after the release of the original iPad in 2010 the Cupertino-based company came to the knowledge that iPad was actually owned by Proview Shenzhen in the mainland China, and this time the electronics company demanded $10 Million for settlement.

Both Apple and Proview Shenzhen had been taking turns at Chinese courts for the settlement in the patent case and now finally the issue has been resolved with $60 Million changing hands.

A lawyer for Proview Shenzhen, Xie Xiangui, was reported as saying the companies reached an agreement last week that was ultimately approved by a Chinese court. However, there has been no statement issued by Apple to date as to the matter.

Chinese market is growing in the electronics business and for Apple it has become the biggest one in the last one year, accounting for around 20 percent of all of its revenues. The iPad name settlement will certain allow the company to pursue the higher profitability in the current year. After iPhone, iPad is the hottest selling product from the company and takes up to 17 percent of its overall shares.

Sales in the first half of 2012 in mainland China, Hong Kong and Taiwan were $12.4 billion, compared to $13.3 billion for 2011 as a whole, Apple CEO Tim Cook said in April. “It is mind boggling that we can do this well.”

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Posted by Usman Khalid on Jul 8 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.