Confirming the latest rumor asserting a possible settlement, Apple has reportedly offered Proview just $16 million for the rights to use the iPad moniker in China.
That’s a far cry from a whopping $400 million the cash-strapped display maker is allegedly seeking in order to settle the trademark dispute and appease its creditors.
At the same time, Apple too is in a hurry to settle this dispute as the company looks to launch its new iPad in the all too important 1.33 billion people market, without risking a country-wide sales ban…
Note: The source article got a figure wrong. This story has been updated to reflect the $400 million dollars Proview is seeking instead of the originally reported $63 million.
Matt Brian, writing for The Next Web has the story, sourced from a report shared by Sina (via the Beijing Times) and based on sources familiar with the negotiations between Apple and Proview.
Proview creditor Fubon Insurance has already moved to reclaim debts totalling $8.68 million, requesting that the company be put into liquidation. Compensation totalling $400 million would be a long way off the $2 billion lawsuit the company filed in the US earlier this year (originally it asked for ‘millions’), although this was dismissed by US courts in the past week.
I think Apple is poised to resolve this dispute without having to break the bank. Some people feared that a settlement figure could be in the neighborhood of hundreds of millions of dollars, if not billions.
While nothing is certain until they settle, too high a figure would set a dangerous precedent and basically send a signal to any sue-happy company out there that it’s alright to bring trademark infringement claims against Apple and seek a sizable cash payment.
Proview is not in a position to drag this case forever.
The company is bankrupt, strapped for cash and its creditors are showing willingness to liquidate assets.
Proview has recently suffered another blow as a California judge threw their iPad complaint in the U.S. out of the window.
I think a settlement will soon be announced so Apple could finally launch the new iPad in the 1.33 billion people country.
What’s your take?