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Apple may face $1.6 Billion Payout for 'iPad' Trademark in China

An ongoing legal battle between tech giant Apple and Chinese company, Shenzhen Proview Technology, who says it owns the 'iPad' trademark in the country, could prove very costly to the former, as the Mail Online reports.

The stakes are particularly high since Apple is fighting for the iPad name on the largest market in the world, which is at the core of Apple's expansion strategy. Consequently, Apple filed a counter-lawsuit and accused Shenzhen Proview Technology of infringing its world famous iPad trademark.

Apple has appealed to the Higher People’s Court of Guangdong province after losing a case in Shenzhen over the trademark infringement in China, the Xinhua News Agency reported on Monday (via Bloomberg).

It seems unthinkable that Apple might have to think about selling its all-conquering tablet under another name than the 'iPad' on the Chinese market.

But the alternative, if Apple does insist on keeping the name, could be to pay $1.6 billion to Shenzhen Proview Technology, which is the amount the company is seeking for rights to the trademark in the country.

"We ask the court to stop selling and marketing for Apple’s iPad in China. We also demand an apology," Proview Shenzhen lawyer Xie Xianghui told China Daily.

However, a glimmer of hope appeared for Apple yesterday, as China's State Administration for Industry & Commerce announced it would investigate Apple's claims and look more closely at the iPad trademark infringement, as the Beijing Daily reported.

Radu has been working as a freelance writer for more than five years and has been blogging around since 2004. He is interested in anything Apple as well as gaming and mobile applications.