China is once again opening up for the iPad with Proview’s complaint being settled for 60 million dollars.
The initial payment of 55 000 dollars to use the iPad brand in China was obviously not enough, with Apple now having the right to freely use this brand in the country… but for 60 million dollars. This is the result of a complaint filed by Proview who contests Apple’s rights after signing with one of their affiliates.
Apple negotiated the naming rights by using an affiliate which didn’t reveal their real intentions. Once the real reason for the use of the iPad brand was discovered, with Apple to distribute their tablets in China, Proview’s Chinese head office filed a complaint, believing that they were tricked.
Since the company was heavily indebted, they also saw this as a good way of getting out of debt. They therefore took their case to the United States, in addition to China, although they did so without establishing a solid argument to base their complaint on.
Apple, who absolutely wants to gain access to the Chinese market to maintain their growth, accepted negotiations after having tried to justify their initial agreement. In the end, an agreement was reached between the two parties, although a long way from the hundreds of millions of dollars (or even billions of dollars) hoped for by Proview. The final agreement of 60 million dollars was finally approved by the High Court of the Guangdong province in late June.
This decision will help get rid of the iPad’s seized in numerous Chinese cities early in the affair and the eventual issues linked to the distribution of Apple products. For Proview, this isn’t finally not the goose that laid the golden egg which will pay off all of their debts, but it is a second chance for the company that is under heavy scrutiny from creditors.