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Proview Sues Apple in U.S. Over Alleged Deception in iPad Trademark Purchase

Reuters reports that the dispute over the iPad trademark in China has taken an interesting turn, with Proview Technology filing suit against Apple in the United States over alleged deception related to the deal between the two companies.


Apple set up a dummy corporation known as IP Application Development Ltd (IPAD) to conduct negotiations with Proview over the trademark back in 2009, and Proview's suit alleges that Apple's efforts to keep its identity secret amounted to fraud.
In its filing, Proview alleged lawyers for IPAD repeatedly said it would not be competing with the Chinese firm, and refused to say why they needed the trademark.

Those representations were made "with the intent to defraud and induce the plaintiffs to enter into the agreement," Proview said in the filing dated February 17, requesting an unspecified amount of damages.
The use of dummy corporations is not particularly unusual in business negotiations, with companies sometimes seeking to keep their identities secret as they work to acquire intellectual property and other assets in support of products under development. By keeping their identities secret, high-profile companies hope to avoid having their plans become public while also looking to strike more favorable deals with companies who think they are dealing with a small business rather than a deep-pocketed industry leader.

MacRumors discovered in the weeks leading up to the introduction of the original iPad in January 2010 that Apple had used a similar dummy corporation with a nearly identical name of IP Application Development LLC to register its own iPad trademarks.

Apple claims that its IPAD dummy corporation purchased the rights to the iPad trademark from Proview in ten countries back in December 2009. Proview has claimed that the transaction did not include the Chinese rights, and the two companies are currently facing off in a number of Chinese courts over the matter. A Hong Kong court ruled last year that Proview and several of its subsidiaries and associated companies had conspired to extort millions of dollars of Apple's by refusing to turn over the Chinese rights to the trademark, but Chinese courts have in several cases sided with Proview.

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Top Rated Comments

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37 months ago
Huh?

Companies are not obligated to explain why they want to buy the trademarks and if Proview had doubts, they could've say no to the deals.

Also, Proview had no tablets, so Apple is not competing against them.

This is just a scare tactic to try to get Apple to pay up.
Rating: 28 Votes
37 months ago

And the shameless hypocrisy continues. Please Apple just pay what you should pay in good faith already. You try to sue Samsung and others at every turn, but you blatantly use someone else's trademark and for whatever reason, you feel you shouldn't have to pay. But everyone else owes you everything right? I've got a nice tall glass of ethics and morals on the table for you. Come take nice big soul cleansing swig.
Absolutely despicable and shameless.


What the hell are you talking about? Apple is under no obligation to pay more than it agreed to pay.
Rating: 18 Votes
37 months ago

And the shameless hypocrisy continues. Please Apple just pay what you should pay in good faith already. You try to sue Samsung and others at every turn, but you blatantly use someone else's trademark and for whatever reason, you feel you shouldn't have to pay. But everyone else owes you everything right? I've got a nice tall glass of ethics and morals on the table for you. Come take nice big soul cleansing swig.
Absolutely despicable and shameless.


I gather you haven't read the documents provided in this discussion.
Rating: 16 Votes
37 months ago
So now they're bringing a bad name for themselves in the US as well.
Rating: 15 Votes
37 months ago

And the shameless hypocrisy continues. Please Apple just pay what you should pay in good faith already. You try to sue Samsung and others at every turn, but you blatantly use someone else's trademark and for whatever reason, you feel you shouldn't have to pay. But everyone else owes you everything right? I've got a nice tall glass of ethics and morals on the table for you. Come take nice big soul cleansing swig.
Absolutely despicable and shameless.


Proview (China) signed the deal. Apple has proof and that is why they won in HK. Thanks MikhailT for the link (http://allthingsd.com/20120216/take-a-look-at-some-of-apples-evidence-in-proview-ipad-dispute/?reflink=ATD_yahoo_ticker).
Rating: 14 Votes
37 months ago
"Proview's suit alleges that Apple's efforts to keep its identity secret amounted to fraud."

Translation: "We should have asked for a lot more money."
Rating: 13 Votes
37 months ago

And the shameless hypocrisy continues. Please Apple just pay what you should pay in good faith already.


Proview was paid what Proview asked for the rights, which they said included China. They are the ones that are acting in bad faith, not Apple. So they deserve nothing and should get nothing.

The only reason that Apple doesn't 'own' the trademark on the books is because Proview is refusing to honor a signed and paid deal and transferring the 'ownership'.

It would be like if you owned a car and I offered to buy it from you and we sent a deal, even put it on paper and I gave you the money you asked for. But then you found out that I had just won the lotto and felt that I should have paid you more so you refuse to file the paperwork to transfer the registration.
Rating: 12 Votes
37 months ago
Hmmm...


Rating: 11 Votes
37 months ago
If Proview is bankrupt who is paying all these legal fees ?
Rating: 10 Votes
37 months ago

Sneaky, sneaky Apple!!

Frankly, it was deceptive- Whether it was fair game or not, or more importantly in this case- legal or not- is another question entirely. But I would be upset if I thought I was dealing with a small company and it turned out to be a famous and huge international corporation, that's for sure.


Why should they upset. They got their asking price. I'm sure they were happy with it at the time of sale.
Rating: 10 Votes

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