IP protection awareness needed

The recent dispute between Apple and Proview Technology over the iPad trademark has come to an end with Apple paying $60 million. The case should remind entrepreneurs to pay more attention to intellectual property protection, says an article on the Beijing Youth. Excerpts:

Apple and Proview Technology (Shenzhen) have reached an agreement. The dispute has finally been solved.

Considering the imbalances of the two sides, namely a giant global corporation and a small local company facing bankruptcy, many refer to the case as Goliath against David.

But Goliath had a fatal deficiency that made it lose the case: it purchased trademark rights for the iPad from a ProView affiliate in Taiwan. Proview insisted that Apple had only got the trademark in Taiwan.

Obviously, Apple was to blame due to lack of knowledge over politics in the region: that's why the Shenzhen Intermediate People's Court judged in favor of Proview.

When the case was appealed to the Guangdong High People's Court, the court chose to mediate the dispute, on the grounds that Apple must admit its fault and pay a suitable price. The decision was mutually beneficial.

Apple's new iPad has already passed China's CCC authentication process and got its telecom entry permit, but Apple would not be able to sell the product without ending the lawsuit, which could have resulted in huge losses. For Proview, holding a blank iPad trademark wouldn't add much also; it could very possibly get nothing if Apple chose to change the trademark.

In other words, the current result with Apple paying $60 million to Proview is a rational choice for Apple and supports Proview's legal claims. The mediation has set a good example for similar trademark disputes.

Such disputes are not rare, both internationally and domestically. Whenever a company creates a new product, it can face claims from trademark registers. The claims will be supported by courts, as long as they are legal.

The trademark dispute between Apple and Proview reminds entrepreneurs to pay more attention to trademark protection, which is no less important than production development.