The embattled monitor maker Proview, fighting Apple over rights to the iPad name in China, suffered a blow as the Shanghai Pudong New Area People’s Court rejected a preliminary injunction against the sale of the iPad. This means Apple can continue selling iPads in its flagship Shanghai stores without fear (and embarrassment) of sales suspension.

The hearings are now postponed, because both companies are awaiting the results of a separate case in the Guangdong provincial high court, the Wall Street Journal reported today.

Reuters said Apple is appealing a December court decision ruled in Proview’s favor. “A higher court hearing for the appeal is set for February 29 in China’s southern province of Guangdong,” the news gathering organization wrote. Interestingly, it has come to light that the Bank of China and Minsheng Bank are controlling debt-laden Proview since March 2009. As a result, Proview is not allowed to make any agreements without the creditors’ approval, essentially turning the banks into silent parties with vested interests, as one trademark lawyer told Business Week:

Lawyers for Proview, which marketed and sold an iMac-like desktop in 2000 named I-PAD, took stance ahead of the hearings yesterday that an out-of-court settlement with Apple “is quite possible.” Apple responded that Proview’s trademark is invalid because its I-PAD computer had not been on sale for years. Apple also argued that its own iPad tablet is benefiting China’s economy through the creation of manufacturing jobs and tax revenues:

Apple in 2009 snatched rights to the iPad trademark in 10 different countries from Proview’s Taiwanese affiliate for about $55,000, including rights to market the iPad in China. The iPad maker secretly founded a United Kingdom-based firm to get trademarks so that Proview would not know at the time that Apple was the purchaser.

  • Proview sues retailers in Southern China seeking ban on iPad sales (9to5mac.com)
  • Proview: “We are now preparing for negotiations with Apple” (9to5mac.com)
  • Fighting Proview in Shanghai court, Apple highlights iPad’s benefits to China’s economy (9to5mac.com)
  • The price of the iPad name in China has gone up to $2B (9to5mac.com)
  • Apple finally talks, says that Proview refuses to honor their agreement to transfer iPad trademark (9to5mac.com)