Apple has paid $60 million in a settlement to end a dispute in China over ownership of the iPad name, a court announced Monday. The settlement will allow an increase in sales of Apple's iPad within the Chinese market.
Apple poses a threat for China's communist government, which aims to bring technology investors into the country to help improve China's economy.
Although Apple Inc. disputed that it purchased the global rights to the iPad name from Proview three years ago, the Chinese authorities claim that the rights in China were never officially given to Apple. A court ruling in December supported Proview, stating that it still owned the name in China. In an attempt to force Apple to settle, Proview convinced Chinese authorities to take hold of iPads in China.
"The iPad dispute resolution is ended," the Guangdong High People's Court said in a statement. "Apple Inc. has transferred $60 million to the account of the Guangdong High Court as requested in the mediation letter."
Although struggling Proview hoped to get more money out of the deal, they decided to settle to pay off debts quickly. According to, Xie Xianghui, a lawyer for the company, Proview hoped to receive $400 million out of the settlement.
Both Apple and its customers are excited about the financial agreement because it ends what would have stopped the company from selling its new iPad 3 in China.
Although Apple has not yet announced when it will release the device in China, the country's telecommunications equipment certification agency already approved the iPad 3 earlier this year.
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