As of July 2, 2012, the World Trademark Review and its blogger, Helen Sloan, are reporting that Apple has agreed to pay $60 million to Proview Technologies for the IPAD mark in China. As I previously summarized in an earlier post, Apple thought it had already acquired all the rights to the IPAD mark, but it learned after a transaction with Proview’s sister company that it had not (allegedly) obtained a complete assignment in China from the record owner of the rights there. Apple’s proffered settlement is quite a bit larger than the $16 million it was rumored to be offering, but given the popularity of the Apple device and the potential market in China, the sum is a worthy investment.
Lessons from Apple’s experience include:
1) Diligence needs to be thorough. Mixed ownership of assets in related, sister and subsidiary names is not uncommon. Making sure the papers are signed by the right entity is critical to finalizing a deal and getting genuine closure on the acquisition of any intellectual property right.
2) Negotiating through an acquisition subsidiary can be perilous. Apple used a separate corporation to purchase rights to the IPAD mark in various countries … Keep reading