Is Apple Waving the White Flag in China?
Apple (NASDAQ:AAPL) is said to have offered Proview Holdings a compensation amount in the two companies’ court case over the use of the iPad trademark in China. The two had been talking after a Chinese court deciding on the case asked attorneys to discuss settlement before it delivered a verdict.
“We feel that the attitude of Apple Inc has changed,” Proview attorney Xie Xianghui told the Xinhua news agency on Sunday. “Although they expressed that they were willing to negotiate, they have never taken any action before. But now, they are having conversations with us, and we have begun to consult on the case.”
Xie said Apple offered an undisclosed amount as compensation package, and while Proview had not agreed on the deal, talks were still on.
Proview, an out-of-business maker of computer screens and LED lights, sued Apple over the right to use the iPad trademark while selling its tablet in China. According to Apple, Proview had agreed to sell it the trademark for use all over the world. However, the Chinese company said it still owned the rights to the name in the Chinese mainland. Last month, a top executive of the country’s administration had said Proview was right in its assertion.
Apple products have been extremely successful in China, with the company landing almost $8 billion in sales from the country in the last quarter. That was three times the sales of the year-ago quarter, and made up 20 percent of Apple’s total revenue.
However, it has been unable to launch its third-generation iPad in China because of the dispute with Proview, which had applied for bankruptcy protection in 2009. “It’s good for both sides to reach a settlement as soon as possible,” Xie added.
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