Apple (News - Alert) has won a limited legal victory in Shanghai and can still sell iPads in the major Chinese city after a court ruled on a continuing intellectual property battle.

Reuters reported that the local court rejected a request for an injunction against Apple from Proview Technology in a trademark dispute between the two firms. But Proview appears to be appealing the court ruling. “This is a wrong decision,” Roger Xie, an attorney for Proview, told Reuters (News - Alert). “We will submit an application for the court to reconsider its decision.”

Meanwhile, Reuters noted that it would have been “embarrassing” if Apple were no longer able to sell iPads in its three stores in Shanghai.

The Shanghai Pudong New Area People's Court also suspended the case – and will wait for a decision in another case now being reviewed in a higher court in China, Reuters said.

The iPad is not only popular in China; it is also the location Apple uses to make the iPad and other products. In addition, Apple has appealed a decision from another case brought by Proview – which was in favor of the smaller firm in the city of Shenzhen, located in the province of Guangdong, Reuters said.

The cases relate to Proview saying it still holds the iPad trademark in China, Reuters said. TMCnet’s Tracey E. Schelmetic explained that Apple apparently purchased the iPad trademark from Proview Electronics in 2006, paying $55,000 for the right to use it. Proview said the sale of the trademark did not include China.

In one of the cases in China, Proview wants Apple to pay it $1.6 billion in damages, TMCnet said. Apple claims it does own the trademark in China, TMCnet adds. Apple may also face a $38 million – depending how the courts rule.

One lawyer in China, Ren Wenfeng, told Reuters, “It's not clear whether Apple will eventually win the trademark infringement case in China, as the crucial thing will be the ruling by the Guangdong higher court.”

Proview and its creditors may want an out-of-court settlement, Reuters added.