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Apple Proview Letter

Apple Proview Letter

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BY EMAIL AND COURIER

February 20,2012 Mr. Rowell Yang Chairmen of the Board Proview Technology (Shenzhen) Co., Ltd. rowell@proview.com.cn rowellyang@gmail.com North Block, Buildings 21 and 23 Shatoujiao Bonded Zone, Yantian District, Shenzhen Ms. Min Sun Authorized Representative sunm 139@163.com Proview International Holdings Limited Room 2708, 27/F., Shui On Centre, 6-8 Harbour Road, Wanchai, Hong Kong Guangdong Wuwei Law Firm 20lF East Block, Olympic Building, Shangbao Rd, Shenzhen Futian District

-

Re: IPAD Trademark Dispute in Mainland China
Mr. Yang: We are now representing Apple Inc. ("Apple") with respect to its trademark dispute with Proview Technology (Shenzhen) Co., Ltd. ("Proview Shenzhen"). At Apple's request, we are writing you regarding the actions which you, your agents, and your company have undertaken in relation to the IPAD trademarks in mainland China. As you are well aware, Apple's holding company, IP Applications Development Ltd. ("IP ADL"), legally purchased all the rights to the ten iPad trademarks of Proview International Holdings Limited and its subsidiaries (collectively "Proview", including

4

Proview Shenzhen), specifically and expressly including the two trademark rights registered in mainland China for iPad by Proview Shenzhen. Based upon the evidence, you, as Proview's actual controller and chief, as well as Proview Shenzhen's chairman and legal representative, knew and actually authorized Proview Shenzhen's negotiation and conclusion of the transfer agreement of the above trademark with IPADL. The contract and assignment documents were signed on December 23, 2009 by Mai Shih-Hung, the general counsel of Proview Shenzhen, at your direction. However, Proview Shenzhen refuses to honor its agreement and has breached the principles of good faith and fair dealing. Further, Proview Shenzhen and its agents continue to make statements about Apple to the public, which are false and misleading, including: • that Apple's affiliate "mistakenly" transacted with Proview Electronics Co., Ltd. ("Proview Taiwan", Proview's another subsidiary) who did not own the trademarks for IPAD in mainland China; • that "Preview Shenzhen had no knowledge of the trademark transfer"; of Proview Taiwan who

• that Apple's affiliates dealt only with representatives "had nothing to do with Proview Shenzhen"; and

• that the IPAD trademarks in mainland China "were not included in the package of trademarks under consideration" in the sale. However, the information provided by Proview Shenzhen to the press and government agencies is contrary to the facts proved by the evidence, including certain documentary evidence that was not available to the Shenzhen Intermediate People's Court for its consideration in the first instance proceedings. As you and Proview Shenzhen are aware, Apple has appealed based upon such evidence and Apple's appeal has now been accepted and is set for hearing before the Guangdong High People's Court. We remind you that there has not been any final determination or final court judgment from the Appellate Court in the P.R.C. concerning the ownership of the two IPAD trademarks in dispute. Therefore, you and Pro view Shenzhen together with your various agents or lawyers should respect Chinese law and the Chinese court proceedings. Accordingly, it is inappropriate to release information contrary to the facts to the media, especially when such disclosures have the effect of wrongly causing damage to Apple's reputation. You will be held legally responsible for such activity. The following facts are reflected by the evidence already in Proview Shenzhen's

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possession: • Numerous emails from August 2009 through December 2009 clearly establish that Proview Shenzhen was selling Proview's (including all of its relevant subsidiaries) all the IPAD trademarks on global basis, including the two trademarks registered by Proview Shenzen in mainland China. When IPADL inquired in good faith about the purchase of Proview's IPAD trademarks (use of which had been completely abandoned by Proview for more than three years); it was directed to and negotiated for several months solely with representatives of Proview Shenzhen. • On October 21, 2009, Timothy Lo of Proview (UK) introduced Mr. Jonathan Hargreaves of IPADL to Mr. Mai in Proview's "head office," who was described as "in charge of our Legal Department" in China (and whose business card identifies him as the Legal Director of Proview Shenzhen). Mr. Yuan Hui of Proview Shenzhen was also copied on that email. The very next day, Mr. Yuan Hui, again copying Mr. Mai and others at Proview Shenzhen's email addresses, responded and identified himself as a member of the legal department, with his company always identified as "PRO VIEW TECHNOLOGY (SHENZHEN) CO., LTD." (i.e. Proview Shenzhen). • Proview Shenzhen directly negotiated the transfer of the trademarks and agreed in writing on November 6,2009 "to accept [IPADL's] offer of£35,000." • The statement that Proview Taiwan held itself out as the owner of all the IPAD trademarks without the knowledge of Proview Shenzhen and the statement that IPADL "mistakenly dealt with" the Proview Taiwan entity are inconsistent with the facts. To the contrary, it was Proview Shenzhen which stated explicitly in an email on December 15, 2009 that "Mr. Ray Mai and I are located in Shenzhen. But the trademark is (sic) not belong to Shenzhen company but Taiwan company. That [was] the reason why we choose the meeting location in Taiwan." • The transaction negotiated and agreed by Proview Shenzhen always expressly included the two trademarks registered in mainland China. The first draft of the assignment agreement sent by Mr. Jonathan Hargreaves to Proview Shenzhen on November 10, 2009 included on its "Schedule A" the P.R.C. registrations (including the specific registration numbers). Proview Shenzhen confirmed that the assignments of all the trademarks owned by Proview in all countries (including those owned by Proview Shenzhen) would be executed, including stating in an email to Mr. Hargreaves on November 20, 2009, "As you know my company is an international company and it always keep to its promise," and that once IPADL paid the money, "then my company will sign the country assigmnents." The assigmnent documentation signed by Mr. Mai on December

~ ~ ~ ~

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23, 2009 also included the Schedule A, initialed by Mr. Mai, identifying the registrations and registration numbers in mainland China. Mr. Mai also signed the China-specific country assignment document for the mainland China registrations. • The evidence IS also clear that you, Mr. representative of all of the Proview entities, aware of and specifically authorized Proview two IPAD trademarks registered in mainland the contrary are untrue. Yang, as chairman and/or legal including Pro view Shenzhen, were Shenzhen and Mr. Mai to sell the China. Your public assertions to

As you are also aware, as you have appeared pro se in the Hong Kong court proceedings, in June 2011, the Hong Kong Court of First Instance granted Apple's request for a preliminary injunction against Proview Shenzhen, its directors (including you personally), its agents and lawyers, expressly prohibiting them and you from attempting to sell or otherwise exploit the IPAD trademarks and from making any oral or written statement to the effect that Proview Shenzhen owns those rights. The very conduct in which you and your agents are engaging has actually violated the injunction. While the Hong Kong court has yet to reach a final adjudication of Apple's claims in that case, the injunction speaks for itself as to the Hong Kong court's view ofthe case. Proview as an "international company" should respect Hong Kong law and the Hong Kong courts and you should manage your lawyers and agents appropriately. Making misrepresentations in the press to inflame the situation is adversely affecting the interests of the parties in seeking any resolution of the matter. On behalf of Apple, we formally reserve all rights to take further legal action against any individuals and entities for any damages that may result from defamatory statements and unlawful actions intended to wrongfully interfere with Apple's business and business relationships.

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