Apple Pays iPad Rights in China, Threatened with Fine in Italy

BEIJING, China and ROME, Italy – Apple was forced to pay $60 million to Chinese display manufacturer Proview. In Italy the company may be fined further for its non-compliance with warranty regulations.

The payment to Proview is in order to settle the claim of the former over the name iPad, which Apple uses for its line of tablets.

The nature of the case hides behind the fact that at some point in 2009 Apple was able to purchase the name from a representative of Proview for some $55 000, but China was not amongst the countries for which the name was registered in. After Proview’s claim against the use of the name iPad in Chinese market, the company hoped for a compensation of some $400 million, but according to its lawyer the settlement for $60 million is a fair decision for both sides.

In a related case, Apple is being sued in Shanghai by Zhi Zhen Internet Technology for the implementation of  Mandarin and Cantonese speaking software in the popular Siri iPhone app. According to the company, it owns the patent for voice technology from 2004 and after not receiving any answer from Apple on the matter, it turned to the courts. Apple is said to unroll Mandarin and Cantonese speaking Siri from China and Hong Kong markets.

In the same time in Italy, Apple is being threatened to be fined a further EUR 300 000, after already paying EUR 900 000 for failing to offer the required two-year free warranty in agreement with the Italian law. According to Italian authorities, Apple is still offering a paid second year of warranty without clarifying that the warranty will last two years, even if the paid option is not included. In this case, even temporary closure of Apple Italy is possible.