The $60 Million Mistake

In 2012, Apple — the world's most valuable company — paid 60 million USD to a near-bankrupt Chinese display manufacturer called Proview Technology. The reason? Proview had registered the "iPad" trademark in China years before Apple launched its iconic tablet.

Proview Technology (Shenzhen) had legitimately registered "iPad" as a trademark in China in 2001 — four years before Apple unveiled the iPad in 2010. When Apple tried to enter the Chinese market, they discovered they couldn't use their own product name.

How It Happened

Proview International, the parent company in Hong Kong, agreed to sell the "iPad" trademark globally to a shell company Apple used for the acquisition. The deal was signed in 2009 for approximately 35,000 GBP.

However, the Chinese trademark was registered under Proview Technology (Shenzhen) — a separate legal entity from the Hong Kong parent. The Shenzhen subsidiary argued it was never part of the deal and refused to transfer the Chinese trademark.

Apple sued Proview in Chinese courts. The courts ruled against Apple. In China, trademark rights belong to whoever registered first, regardless of global agreements with related entities.

By early 2012, Proview was near bankruptcy but held the iPad trademark. Apple, facing a potential ban on iPad sales in China — its second-largest market — settled for 60 million USD.

The numbers tell the story: The global trademark sold for 35,000 GBP. The Chinese trademark alone cost 60 million USD — roughly 2,000 times more.

Key Lessons

  • China's first-to-file system is unforgiving. Unlike the US or UK, where prior use can establish rights, in China the first filer owns the mark.
  • Global agreements don't automatically cover China. Trademark registrations are territorial — each country's registration is independent.
  • Register before you launch. Apple launched the iPad in 2010 without securing the Chinese trademark. By the time they tried to register, it was too late.
  • The cost of waiting is exponential. A trademark filing costs a few hundred dollars. Apple paid 60 million.
  • Shell company acquisitions have limits. Apple's use of a shell company backfired when the Chinese entity disputed the transfer.

How RTMCN Prevents This

At RTMCN, we file trademark applications before our clients launch in China. Our process includes a comprehensive trademark search, strategic class selection, and direct CNIPA filing — ensuring your brand is protected from day one.

Even Apple couldn't avoid paying a 60 million USD premium for failing to register early. For smaller brands, the lesson is even more critical: register your trademark in China before you need it.