What
will Apple do to hold on to one of its most successful product names?
With the iPad 3 about to be released, Proview could do serious damage
(To
all those who were waiting for part 2 of the wire-free challenge: the
iPad trademark story took some bizarre and unexpected twists in the last
few weeks and thus superseded that story. I did complete the wire-free
project but did I manage it in the allocated two hours and was I
completely successful? That is what I will reveal next week.) THIS IS
the story of the iPad, a wildly successful flat device that some people
love more than their internal organs. It sold in the millions, setting
up a new category, and fights among competing `iPad-killer' devices
every single week. While it has fought and won epic battles, its very
identity and name is now at stake.
This is a story with a cast of colourful characters and soap opera-ish twists and turns. Let's meet the star cast first.
APPLE
iPAD Moving to its third iteration, this Tablet device, along with its
smaller brother, the iPhone, have made Apple worth $460 billion that's
more than Microsoft and Google combined, more than the GDP of most
countries and even bigger than the illegal drugs business worldwide. So
it's a critical and very profitable business for the fruity company. For
this device to lose its name would have catastrophic consequences.
PROVIEW
iPAD Yes, Proview had an iPad much before Apple did. The name stood for
Internet Personal Access Device. It was an all-in-one system built into
a CRT monitor that could access the Internet, was released in 1998 and
had a rather confusing marketing campaign.
Consider this passage from
the brochure “....The iPAD development constructs on the dream of
technology founded human spirit. To make use of advance serial
products... it is the strong leading trend and nobody can resist the
charming of iPAD“. Not exactly Shakespearean prose but at least an
iPad existed before the iPad! PROVIEW, THE COMPANY This company is based
in Shenzhen, China; its mainline business is the manufacturing of
monitors; it had made a name for itself a while back and is in financial
doldrums right now ($97 million in losses in 2009); it has filed for
bankruptcy, had a former CEO who resigned due to his own personal
bankruptcy and a current CEO who has clearly stated that they are
fighting this battle with Apple to get a settlement that will help it
sort out the “big financial trouble“ they are in. Not exactly a
confidenceinspiring history but then who are we to judge? So, we've
established most of the cast and the happenings. Proview had an iPad
before Apple had an iPad and Proview owned the iPad trademark. So far,
so good. Then the following happened.
THE TALE OF TWO iPADS Apple
bought the worldwide rights for the iPad trademark from Proview in 2006.
But it didn't buy it directly from Proview but from an affiliate
company. Everything was all hunkydory till the iPad became a rather
serious hit for Apple. Proview then made a claim that they did not sign
off on the 2006 deal for the iPad trademark in China. In fact, they've
even gone so far as to claim that the affiliate had no right to sell the
trademark in the first place. While a Hong Kong court found that Apple
owned the trademark, all hell broke loose when a court in southern China
ruled that the iPad trademark was owned by Proview.
It ordered local
resellers and stores not to sell Apple's iPad and also got local
authorities to pick up stock of the iconic brand off the shelves.
CHEST
THUMPER Now emboldened, Proview asked for all production and exports of
the Apple iPad to stop from China as it is illegal for Apple to
manufacture a product in China by a name Proview owned. While this
hasn't happened and authorities have refused, Proview is pursuing this
to the fullest. Further, it has also threatened to sue Apple for $2
billion in the USA. The further claim now is that Apple had clearly
stated in its contract that it would not use the iPad name to
manufacture a competing product. Just how a clunky, big, fat, thick CRT
monitor with 1998 technology is competition for an iPad is a little
difficult to figure out. Nonetheless, Proview seems to think its case
has merit! #WHENANIPADISNTANIPAD So there you have it. With the iPad 3
(retina display, quad-core processor, 4G connectivity are some of the
rumours) about to be released, Proview could do some serious damage
here. And while some backroom dealings could close this entire case in
one shot, I doubt it'll happen soon. In case Apple can't sell the iPad
as an iPad in China, what could they call it then?
by Rajiv Makhni
