Another story to file under “When Lawyers Attack!”, as the comedic tragedy about Apple, Proview, and a little thing called the rights to the iPad name in China takes an unexpected twist. Proview’s lawyers are suing to have the name delivered to them instead of Apple, even though the boys in Cupertino just paid $60 million bucks for it!
Chinese law firm Grandall has submitted an “asset protection application” to the Shenzhen Yantian District People’s Court requesting that the court temporarily seize the China iPad trademark as part of Grandall’s lawsuit against Shenzhen-based display device manufacturer Proview Technology, a subsidiary of Proview International Holdings (0334.HK). The seizure could affect the transfer of the trademark to Apple.
Proview, the now bankrupt monitor maker who had a crappy little Compaq clone named the IPAD held the rights to that name in China. When Apple was working on launching their iPad, they formed a shell company, (see Disney in Orlando, FL), and bought the IPAD trademark from Proview for $35,000. Or at least that’s what the receipt said.
After the iPad was launched and became the rockstar device it is today, Proview’s Mainland China cleared their throat and said, “Um, we sold you the rights for some other territories, not Mainland China.” They claimed the Proview division that Apple’s shell company bought the trademark from didn’t have the authorization to sell the rights in China. So, after many “harrumphs” from lawyers and judges all around, court cases on two continents, and some behind the scenes negotiations, Apple said, “We’ll pay you $60 million for the IPAD name, so we can use ‘iPad’ in China.” Heads were nodded, promises were made, legal papers were signed, and it was all over. Until now.
Grandall, Proview’s law firm hasn’t been paid the $2.4 million they claim is owed to them by Proview. Proview says since they’re bankrupt, they don’t have to pay their legal fees right now. Grandall rightly fears if they don’t grab their piece of the pie right now, they’ll never get it.
It should be mentioned that this isn’t just a law firm trying to claim an outrageous fee, they fronted all the costs of the case up front. Proview couldn’t do it, they’re bankrupt, remember? Grandall fronted the fees with the agreement they’d get a percentage of any settlement received. Proview got their $60 million, so now Grandall is saying, “Hey, how about ours? A little something for the effort?”
So, the law firm now would like to get the IPAD trademark assigned to itself until it gets its cut of the action. Proview probably could care less about who gets the trademark now, they’re bankrupt. But what will the law firm do? Will it hold the trademark, figuring Apple might pay their fees? Maybe they could sue Apple again for violating what is now the law firm’s trademark? And what about all those iPad’s Apple has been selling in mainland China since last week?
We’re going to need some more law books. With pictures this time.
Wow, riveting stuff. Come back next week for the continuing story of, “Trademark, Trademark, Who Owns the Trademark?”
