Apple, Proview Argue in Court over iPad Trademark (AAPL)

The dispute between Proview Technology Shenzen and Apple Inc. (NASDAQ: AAPL) was heard in the Higher People’s Court of Guangdong today, but was adjourned when the judges asked the disputants if they wished to discuss a settlement. Apple paid $55,000 in 2009 to the parent company of Proview Shenzen for the rights to the iPad name. Proview Shenzen now claims that the parent company, Proview Technology Taiwan, had no authority to sell the mark on the mainland.

In court, Apple claimed that allowing Proview to use the iPad mark would “cause confusion and harm consumer interests,” according to a report at Bloomberg News.

Proview Shenzen argued that the employees from Proview Taiwan did not represent Proview Shenzen in the 2009 negotiations with Apple. Proview Shenzen’s argument seems a bit forced:

Personnel may have multiple roles or titles within the group, but the question is in what capacity were they acting?” Xiao Caiyuan, representing Proview, said during the hearing. “The agreement makes it clear they were acting on behalf of Proview Taiwan.

The outcome of the suit could have a large impact on Apple’s business in what is now its second-largest market.