Pictured above: Proview’s iMac-like computer named iPAD, released 12 years ago.

The latest in an ongoing iPad trademark dispute in China comes as Shenzhen-based Proview claims a small victory in its pursue of a $2 billion compensation from Apple over the iPad moniker in China. According to a report filed by The Associated Press, Proview’s lawyer Xie Xianghui told the media Monday that the Intermediate People’s Court in Huizhou ruled last Friday that local distributors should stop selling iPads in the country.

Previous reports declared that commercial authorities in more than 40 Chinese cities were removing the device from store shelves. Apple appealed to Guangdong’s High Court against an earlier ruling in Proview’s favor, stressing in today’s statement its case is still pending in mainland China. It should be noted that Hong Kong’s and Mainland China’s legal systems are not very much alike.

PCWorld followed up with an update and said Apple will sue Proview’s lawyers and bosses for  “defamatory statements.” Folks familiar with Apple’s letter to Proview claim it reads: “It is inappropriate to release information contrary to the facts to the media, especially when such disclosures have the effect of wrongfully causing damage to Apple’s reputation.” The document is embedded below.

So, who is the biggest beneficiary of this brouhaha? Samsung— its Galaxy Tab family of tablets is after the same high-end of the market. Per IDC, Apple in the third quarter of 2011 moved 1.3 million iPads in China versus 58,000 Galaxy Tabs.

Once a well-known display maker, Proview is now strapped for cash and recently filed for bankruptcy. The company maintains it first used the iPAD moniker, which stands for “Internet Personal Access Device,” for its iMac-like computer dated back to 2000.

Apple spokesperson Carolyn Wu today re-iterated that Apple purchased from Proview’s Taiwanese affiliate in 2009 the worldwide rights to the iPad trademark in 10 different countries for about $55,000. The company is accusing Proview of not honoring that agreement, with Wu noting that “Proview refuses to honor their agreement with Apple in China and a Hong Kong court has sided with Apple in this matter.” According to a Hong Kong court ruling from last July, Apple founded a United Kingdom-based company to snap up rights to the iPad trademark in various markets without revealing Apple was the purchaser.

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  • The price of the iPad name in China has gone up to $2B (9to5mac.com)
  • Proview tries to block iPads from coming in or going out of China (9to5mac.com)
  • A court decision today indicates that Apple may not own the iPad name in China (9to5mac.com)
  • Apple finally talks, says that Proview refuses to honor their agreement to transfer iPad trademark (9to5mac.com)