Apple has been reported to be in serious negotiations with Proview for the Chinese trademark rights to the iPad name. Now, comes a report that Apple has offered $16 million for the name, but Proview is holding out for $400 million. That’s how much Proview needs just to keep their sinking boat afloat.
Proview desperately needs a huge payout from Apple to prevent the company from entering liquidation. Its creditors include eight Chinese banks, in addition to Fubon Insurance, a Taiwanese company which has already moved to reclaim debts of $8.68 million.
The battle for the iPad name goes back to 2010, but it was back in the spotlight this year after Apple contested a decision that said Proview was the legal holder of the “iPad” trademark in China. This was despite Apple purchasing rights to the name via a shell company.
Proview indicated an interest in settling with Apple earlier this year, while at the same time, company chairman Yang Rongshan warned that Apple must “properly” compensate the company if it wished to gain legal rights to the trademark.
The case has been on hold while Proview fended off a liquidation request from one of its creditors at the beginning of the month. Now, it appears that Proview is pinning its hopes for survival on a large cash payout from Apple.
Apple launched its latest iPad tablet in March, and is currently expanding into other markets. The company has not yet launched the device in China, as it is believed to want to end the trademark fight before doing so.
Unless Tim Cook is willing to whip out Apple’s checkbook and write a $400 million check, it looks like this dispute will continue for awhile longer.