iPad IP !

Posted: 1st February 2012

One of the most important things toiPad make sure of in any legal agreement involving the purchase of assets is that the transferor actually owns the assets you are buying.
Electronics giant Apple recently found itself facing embarrassment after it launched a claim in China alleging breach of trademark rights. Apple sued Proview Electronics over breach of its iPad trademark.
Apple had purchased the worldwide trademark rights to iPad, which had been registered as a trademark in China by Proview Technology, a subsidiary of Proview Electronics. The deal was done with Proview Electronics, which held the trademark rights in the rest of the world.
Proview Technology was not a party to the agreement with Apple. Accordingly, the trademark as regards China was not transferred to Apple by the agreement with Proview Electronics as that company did not own it at the time of the transfer!
Proview Technology has now commenced legal action against vendors of iPads in China on the basis that it owns the iPad IP and it seems Apple is likely to have to negotiate a new deal with Proview Technology for the trademark rights in China.