updated 12:10 pm EDT, Tue April 3, 2012
Reprieve will allow Apple v. Proview to continue
The Intermediate People's Court in Shenzhen has rejected a request to liquidate the assets of Proview Shenzhen, China Daily reports. One of Proview's creditors, Fubon Insurance, had previously filed several requests to have Proview's Shenzhen subsidiary liquidated. Although Proview is currently suing Apple, Fubon has argued that Proview won't make enough money to pay off its debts.
In its ruling the court disagrees, suggesting that Proview's iPad trademark suit could pull in enough cash. "As it is too early to determine Proview lacks the ability to pay off its debts, the court does not accept Fubon's request to liquidate Proview," the judgment states. A ruling in Fubon's favor could have killed the lawsuit.
Proview would need a substantial victory to pay off all of its creditors. It may owe as much as $400 million, and anything short of winning at trial may not bring in enough money. Most such lawsuits are settled outside of court, since parties rarely want to invest the time and money needed to guarantee victory.