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Proview Technology, the bankrupt electronics maker that uses the "iPad" name on several of its products such as computer monitors, has reportedly brought its lawsuit against Apple to U.S. soil.
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"The lawsuit, which was filed in the Superior Court of the State of California in Santa Clara County on Feb. 17, but previously unreported, claimed that Apple had committed fraud when it used a company set up by one of its law firms, called IP Application Development Ltd., to purchase the iPad trademark from Proview on Dec. 23, 2009 for 35,000 British pounds ($55,000)," said The Wall Street Journal.
Proview reportedly showed The Wall Street Journal its e-mail thread with "a representative purportedly of IP Application Development," who told the Chinese company that it wanted the iPad name because it was an abbreviation of the company's name. The "IPAD" representative reportedly told Proview that its future products wouldn't compete with Proview's products.
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Earlier this month, Proview took its case to the Shanghai Pudong New Area People's Court, hoping to win between $1.6 billion and $2 billion and an apology from Apple. Proview lost the case on Feb. 23, which meant Apple could continue selling its iPad tablet in Shanghai stores.
Apple is taking a pro-active stance in this particular trademark dispute, allegedly appealing a December court decision that ruled in favor of Proview. If Apple can win its appeal set for Feb. 29, Proview could possibly give up its case against the iPad name.
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Proview has its back against the wall, as the Minsheng Bank and Bank of China are both reportedly controlling Proview since it fell into debt in March 2009. Consequentially, Proview cannot make any agreements without its creditors' approval.
Yet, the iPad name is all Proview is living on at the moment. Proview still hopes to land an out-of-court settlement with Apple over the iPad name, but Apple argues that Proview is in no position to boss anyone around. The Cupertino, Calif.-based company claims Proview hasn't sold any products using the "I-PAD" name for several years, and argued that its version of the iPad is much more lucrative for people in China, giving them jobs and tax revenues.
"They have no market, no sales, no customers," Apple told Reuters. "They have nothing. The iPad is so popular that it is in short supply. We have to consider the public good. Apple has huge sales in China. Its fans line up to buy Apple products. The ban, if executed, would not only hurt Apple sales but it would also hurt China's national interest."
Proview International, which owns subsidiaries Proview Technology in Shenzhen and Proview Electronics in Taiwan, originally registered the name "iPad" in Taiwan and in mainland China in 2000 and 2001, respectively. After Apple reportedly bought Proview's trademark under the moniker IP Application Development for $55,000 in 2009, Proview claimed the deal only applied to the trademark in Taiwan. Later, Proview chairman Yang Rongshan said Proview did not know IP Application Development was connected at all to Apple.
"It is arrogant of Apple to just ignore our rights and go ahead selling the iPad in this market, and we will oppose that," Yang said. "Besides that, we are in big financial trouble and the trademarks are a valuable asset that could help us sort out part of that trouble."
The legal battles between Proview and Apple begin in October 2010, when Proview threatened to sue Apple "for damages in China and in the U.S.," according to Proview chairman Yang. Reports at the time said Proview registered the iPad name in the EU, China, South Korea, Singapore, Indonesia, Thailand, Vietnam and Mexico, while Apple bought the U.S. iPad trademark from Fujitsu in March.
"Their copy infringement is very clear," a Proview representative said. "The laws are still there, and they sell their products in defiance of laws. The more products they sell, the more they need to compensate."
In 2011, after its successful court battle against Apple, Proview then filed separate lawsuits in the local courts of two Chinese cities, Shenzhen and Huizhou, to stop iPad sales in Apple's authorized retailers and stores.
"We are starting with these two cities, and if we are successful in getting iPad sales stopped, we will consider going after Apple resellers elsewhere in China," said Xie Xianghui, Proview Technology's lawyer.
