Tuesday 28 February 2012

Apple remains in the centre of patent and trademark disputes

It has not been the best start to the year for Apple so far. Lengthy patent abuse and trademark battles prove both frustrating and costly. One of the most important and problematic lawsuits that the firm is currently dealing with is the trademark dispute raised by company called Proview.
According to the Chinese company Apple used ‘deception’ when acquiring its rights to the iPad name in 2009. The firm claims it sold the trademark to a UK-registered ‘special purpose’ firm called IP Application Development Ltd (IPADL) as it was an abbreviation of the company name. In court filings Proview accused Apple and IPADL of fraudulent activity. 


The company believes that in 2009 Apple’s lawyers created IPADL firm solely to obtain the iPad trademark rights without disclosing its link to Apple. Furthermore, one of IPADL’s representatives communicating with Proview via e-mail, Graham Robinson, is believed to have used a fake name, introducing himself as Jonathan Hargreaves. Mr Robinson currently works for a UK company specialising in intellectual property issues but it declined to issue any comments.

According to the case filings IPADL misrepresented why they needed the trademark assuring Proview that it will not use the trademark to compete with the Chinese firm. It is now seeking up to ¥10bn (£1bn) in compensation as well as requests to void the 2009 deal in which it sold the rights to the trademark for $55,000. A month after the trademark deal Apple launched the iPad. Apple in turn accused Proview of failing to honour the agreement in China. Hong Kong court has ruled in favour of Apple in this matter. The Shanghai district court also rejected Proview's demands for Apple to stop selling the iPad.

Proview, which has filed for bankruptcy, is still counting on making a comeback after solving all problems with their competitors. It mainly relies on the outcome of the ongoing dispute with Apple. Despite the unfavourable rulings in Hong Kong and Shanghai the case is still to be heard in the higher court in Guangdong, southern Chinese province.

Proview has not always been that unlucky. It was once a major international player and significant manufacturer. The Chinese company benefited from the first wave of technological innovation providing computers and screens to many companies across China and the world. However, Apple was more successful in embracing the second wave when mobile consumer devices became a necessity.
The dispute between Apple, the technological giant, and Proview, a company on the verge of collapsing, shows how unstable and uncertain technological industry is. Trademark battles can make or break a business. 


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