According to a Reuters report, Proview Electronics Co Ltd and Proview Technology Co filed a lawsuit in Santa Clara County last week. Proview accuses Apple of creating IP Application Development Ltd, or IPAD to buy the iPad name from it. In its filing, Proview alleged lawyers for IPAD repeatedly said it would not be competing with the Chinese firm, and refused to say why they needed the trademark.
Apple on Friday reiterated its statement saying that it had bought Proview's worldwide rights to the iPad trademark in 10 different countries several years ago. It also said that Proview had refused to honor their agreement and a Hong Kong court had sided with the U.S. technology giant in the matter.
A Shanghai court this week threw out Proview's request to halt iPad sales in the city. But the outcome of the broader dispute hinges on a higher court in Guangdong, which earlier ruled in Proview's favor.
Debt-laden Proview International needs to come up with a viable rescue plan before mid-2012 or else it faces delisting from the Hong Kong stock exchange. The company is obviously seeking a settlement with Apple.