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Apple to Pay £38 Million to Use the ‘iPad’ Name

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With Apple’s obvious naming strategy of just sticking an ‘I’ in front of most product names, you’d think that they would have been the first to market a product called the iPad. You’d be wrong though.

After launching the original iPad in April 2010, Apple became embroiled in a legal battle with a Chinese firm called Proview, who lay claim to the trademarked name ‘iPad’. Shortly after the launch Apple purchased the name from Proview using a rather sneaky tactic, using a shell company to make the buy, covering up the fact that it was Apple’s own doing.

Despite owning the name, Apple has since been denied the use of the iPad name in China, one of the biggest gadget markets in the world. The Cupertino Company has now put an end to that ruling by settling with Proview, for a $60 million fee, or £38 million.

While it may seem like a big bag of money to be handing over to Proview, it’s comparatively small compared to the loss of profit that could affect Apple if they were unable to use the iPad name in China.

Apple initially offered a settlement fee of $16 million, and although the decided fee was eventually higher at $60 million, Proview reportedly wanted somewhere in the region of $400 million from Apple, as they may still be declared bankrupt in a separate proceeding.

Apple has recently hit it off with a big push towards China, launching new iPhone, iPad and Mac models all the time. The company also announced the addition of the Chinese Web search service Baidu in its iOS 6 update for iPhone, iPad and iPod Touch, along with native social networks and mail services.

It seems that you’ve got to be very cautious when naming a new gadget these days!

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Via: 9to5mac
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