Shares of Apple rose more than $6 Friday to $522.41 despite a lawsuit by a Chinese company alleging it had used false statements to obtain rights to the name iPad.
Shares of the Cupertino, Calif. company were only slightly below their record of $526.29 set Feb. 15.
Reports emerged Apple was sued last week by Proview International Holdings of Shenzen in a bid to enjoin it from using iPad on its products. Proview agreed in 2009 to sell the name to Apple for the equivalent of $55,000, the filing in Superior Court in Santa Clara County said.
Proview asserted statements by Apple were untrue. As a result, the Chinese company demanded unspecified compensation.
Apple had no comment. The company sold 15.4 million iPads in the last quarter alone, bringing the cumulative total to 55 million.
It's about due diligence, said Michael Bednarek, an intellectual property lawyer with Axinn Veltrop Harkrider in Washington, who has worked in Taiwan. Proview sold its trademark. How could anyone have known Apple would make iPad such a great success?
Proview, which has headquarters in Taiwan but manufacturing in Shenzen and offices in Hong Kong, is a maker of display products that has reported cash-flow problems. Its shares were suspended from trading in Hong Kong in 2010, the last time it reported financial results.
Bednarek said he was familiar with Proview from his time working in Taipei. He said he hadn't followed the company lately.
This week, a Shenzen court threw out a Proview suit to enjoin iPad sales in China. The company won a suit in Guangdong that stopped Apple from transferring the Chinese trademark to itself, the Financial Times reported.
The Hong Kong Stock Exchange lists Proview as an investment holding company with subsidiaries involved in liquid crystal displays, thin-film transistors, cathode-ray tube monitors and computer monitors.
Proview didn't buy a booth or participate officially in the International Consumer Electronics Show in Las Vegas last month, unlike scores of companies from Taiwan and China, including Hong Kong.
Technically, Proview asserted it sold its trademark to an Apple subsidiary dubbed IP Application Development Ltd.
Apple's market capitalization is $486.6 billion, making it the world's most valuable company.