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Apple (AAPL) Might Pay Up to $1.6B in iPad Trademark Suit

February 7, 2012 8:03 AM EST
AAPL Hot Sheet
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    BUY (= Flat)

EPS Growth %: +92.2%
In other ridiculous news...

According to reports Tuesday, Apple (Nasdaq: AAPL) might be in hot water for using the iPad name in China. Though Apple acquired the rights to the iPad name from Proview Electronics in 2006 for a cool $55,000 via a shell company called IP Application Development, Proview is now saying the rights didn't include usage of the "iPad" name in China.

And the firm wants about $1.6 billion for the mistake.

Proview filed a lawsuit in China last year over the incident and demanded 10 billion yuan in reparations. Apple has since counter-sued Proview, saying it was the rightful owner of the "iPad" trademark. Proview got the favorable ruling in a Chinese court, but Apple has appealed the decision.

The lawyer for Proview, Xie Xianghu, said the court was ready to fine Apple 240 million yuan (about $38 million), according to AppleInsider, but Apple's appeal has delayed the decision. Proview has also filed separate suits against authorized retailers in local districts, AppleInsider noted.

Shares of Apple are indicated for a higher open.


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