China has been an important market for Apple, making it as the second largest after the United States in the growth of the Cupertino, California-based firm.
A court made an announcement on Monday that Apple has agreed to settle a dispute against Shenzhen Proview Technology for $60 million just to officially hold the brand “iPad” in China.
The Cupertino, California-based company has difficulties in selling their popular tablet, iPad, in their second largest market because a Chinese company already holds the name ipad since 2001.
Apple had claimed that they already acquired the rights to officially hold the brand “iPad” in 2009 but authorities in China said the rights were not transferred. In the December, a court in China announced that Shenzhen Proview Technology still holds the right of the brandname, and the company is requesting authorities to stop the sales of iPads in China.
“Apple Inc. has transferred $60 million to the account of the Guangdong High Court as requested in the mediation letter.” according to Guangdong High People’s Court. The said dispute has officially ended.
According to the company lawyer of Proview, they hoped a bigger amount that would reach $400 million in total but they were pressured to take the money right away as they have to settle some debts.