Just for the record:
A court in South China’s Guangdong Province will open a trial tomorrow in a case filed by Fubon Insurance asking the court to begin bankruptcy proceedings against Proview Technology Shenzhen Co, a move that might disrupt Proview’s ongoing litigation with Apple Inc over the ownership of the iPad trademark.
Fubon Insurance, one of Proview’s creditors and a subsidiary of Taiwan-based Fubon Financial, appealed to the Intermediate People’s Court of Shenzhen in June 2011 to process bankruptcy liquidation of Proview because of 60 million yuan ($8.68 million) in outstanding debt, but the court rejected the request on March 31 on the ground that the iPad trademark owned by Proview as a company asset might be valuable enough to pay off its debts.
Fubon then appealed to the Higher People’s Court of Guangdong Province on April 10. The court yesterday said in a statement that the trial will start tomorrow.
According to China’s bankruptcy law, once the court decides to start the liquidation procedure, the trademark litigation between Proview and Apple will be suspended. (Global Times)
The iPad trademark is potentially Proview’s most valuable asset, the title of which is under a cloud that will not be resolved until the High Court in Guangzhou rules or the case settles. Don’t expect a bankruptcy proceeding to interfere with that or to proceed with that going on in the background.