Proview sued for legal fees in iPad trademark case

Summary:Debt-ridden Proview Technology, which earned US$60 million in iPad trademark settlement in China, was sued by its legal advisor over failure to pay attorney's fees in the case.

Chinese reports said Monday Proview's legal advisor Grandall Law Firm last week sued the former Chinese iPad trademark owner for failing to pay attorney's fees in the trademark case with Apple.

According to the Beijing-based law firm, Proview had agreed to pay 4 percent of the total settlement fees to Grandall as attorney's fees, which would amount to US$2.4 million in the case.

However, Proview refused to pay the amount to the law firm after the case was settled. The Chinese manufacturer claimed it was in a "very special operating situation" and the "asset of the company is under strict supervisions by its creditors".

Yang Rongshan, Proview's chairman told Sina News the agreement signed between Proview and Grandall was a contingent fee retainer. Whether it will pay the attorney's fees "in priority" will depend on "relevant clauses".

Since Proview is not under normal operation at the moment, payment of the attorney's fees will provoke disagreements from other creditors, according to Yang.

Proview owed as much as US$400 million to eight Chinese banks, Chinese reports indicated. Yang said in early July Proview would have sought higher compensation from Apple over iPad trademark in China if it wasn't under great pressure from its creditors.

Topics: iPad, Apple, China, Legal

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Cyrus Lee, writing under a pen name, is a Hong Kong-based reporter in an English-language newspaper and a correspondent for a radio station.

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