A Chinese court rejected a creditor’s application to liquidate Proview Technology (Shenzhen) Co., allowing the failed display maker to pursue its legal fight against Apple Inc. (AAPL) over the iPad trademark in China.

The Shenzhen Intermediate People’s Court ruled against Fubon Insurance’s bid to liquidate Proview, Roger Xie, a lawyer for Proview, said by phone today. The decision was released to litigants on March 31, he said.

The same Chinese court ruled in November that Proview owned the iPad trademark in China, saying Apple’s 2009 contract to acquire rights to the name was invalid. The Cupertino, California-based company has appealed, and a decision is expected within two months. Proview has filed separate complaints alleging that Apple’s sale of iPad tablets in the country infringed intellectual-property laws.

Fubon Insurance, a unit of Taipei-based Fubon Financial Holding Co. (2881), is assessing whether to take further action in the case, according to an e-mailed statement today. The application for liquidating Proview was taken on behalf of reinsurance partners, Fubon said March 6.

Proview will continue its litigation with Apple, Xie said today. The action against Apple, the world’s most-valuable company, might have been affected if Fubon’s application had been granted, he said. The rejection was first reported by China’s state-run Xinhua News Agency.

Proview Technology, a unit of Hong Kong-listed Proview International Holdings Ltd. (334), has filed complaints to more than 40 branches of the Administration for Industry and Commerce in China, Ma Dongxiao, another company lawyer, said in February. Court actions have been lodged in Shanghai, Shenzhen and Huizhou, Ma said.

Apple has said it bought the rights to the iPad trademark in China from Proview.

(Source: Bloomberg)