Apple Inc. (NASDAQ:AAPL) has paid a sum of $60 million to settle a dispute with Chinese electronics company Proview International Holdings Limited (HKG:0334). The settlement will now allow Apple Inc. (NASDAQ:AAPL) to sell iPad in Chinese market freely and without the fear of liability. Proview has been in shambles and on the verge of bankruptcy, and owes more than $60 million to various Chinese banks and desperately needed the money.
Proview Technology has been snubbing Apple’s business since 2009, when Apple reportedly signed a settlement with Taiwanese arm of the company to buy the iPad name but was apparently duped in the deal. The Chinese court, in December 2011, ruled that the iPad name still belonged to Proview and Apple still did not have the rights to sell in China. Proview had also filed a lawsuit in the the US , in early May this year, court ruled against Proview’s claim that it owned iPad trademark and that Apple was committing infringement of copyright by selling it in US.
China is the second biggest market (the US being number one) for Apple. The settlement will finally smooth out the obstacles in the way of iPad’s sale in China. Payment of $60 million certainly does not seem like a big deal for the IT giant, when weighed against the potential revenues that Apple will gain . As far as Proview is concerned, it might still face liquidation. While it was rumored that the company was hoping for $400 million, the $60 million still looks better than only $16 million that Apple was willing to pay in the beginning.
This looks like a good sign for Apple, as China is key to the company’s expansion. Furthermore, with over $100 billion in cash, Apple was able to settle for a small amount of money for the company.