By You Yunting
On the morning of the 2nd of July, the Guangdong People’s High Court announced both Apple and Proview prefer toend the case through mediation in the iPad battle, and both parties have confirmed the final settlement with $ 60 million paid by Apple for the trademark’s ownership in mainland China and thereby signed the agreement of mediation.
By the agreement, Apple shall remit $ 60 million yuan to the appointed account by the court, and meanwhile, on the 28th of June Apple has applied for the enforcement of the above agreement to the Shenzhen Intermediate People’s Court, where the 1st instance of the trial is heard. After the application, the Shenzhen Court sent the State Administration of Commerce and Industry the judicial decision and the notice of enforcement assistance today, by which the iPad trademark shall registered under the name Apple.
The result of this agreement removes the last obstacle for Apple to launch the new iPad, and we believe the new product could be seen in Chinese markets soon. The payment in this dispute has also become a record in China, and such payment is an extra expenditure considering Apple has signed a trademark transaction agreement with Proview’s parent company and to make the payment accordingly. Therefore, the following points may for foreign operator’s attention in local running:
1. The iPad battle has forced the transnational companies be aware of a different commercial practice and judicial standard facing them when operating in China. An example of this is, the seal rather than the signing is more valued in local transactions, and just like in iPad dispute, the emails from Proview’s staffs were not accepted by the court as the evidence for Apple could not identify the employee who sent the mails.
2. With regard to the case, a higher cost taken by foreign companies in transactions in China is foreseeable, as it could be concluded a longer lasting due diligence investigation is demanded for the avoidance of the breaches by local companies.
3. Finally, we believe the $ 60 million payment is evitable once Apple could have suspended the launch of iPad in mainland China and spared more time for its IPR team on trademark transfer. However for the hot-sell of iPad in the country, Apple has gained an additional benefit from the earlier device start, and from this aspect Apple still makes a bargain in its business.
More iPad news, please check the following posts:
2. According to China Court’s First Instance Judgement, Apple Loses the iPad Trademark;
3. The Extension of the iPad Trademark Battle: Proview Charged iPad Distributor GOME in China;
5. Once Apple Lost iPad Trademark: Would There be A Name Change on iPad3 in China?
6. When Could Come the Decision of the 2nd Instance on the iPad Trademark Dispute?
7. Latest News: Proview Plans to Apply for iPad Import Prohibition in Custom;
8. iPad Trademark Dispute: Amazon China Stops Selling iPad on Demand of Apple;
9. Where Apple’s Confidence Comes from in iPad Trademark Dispute?
10. iPad Trademark Battle and China Corporate Personality Confusion System;
Lawyer Contacts
You Yunting
86-21-52134918
youyunting@debund.com, yytbest@gmail.com
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