A Shanghai court heard evidence Wednesday from a Shenzhen-based technology company over its case against Apple Inc for the use of the iPad trademark in the Chinese mainland.

Previous court rulings in Shenzhen and Beijing were in favor of Proview Technology Shenzhen, but Apple attempted to defend the trademark infringement case at Pudong New Area People's Court to avoid halting its iPad sales in Shanghai - home to three of the country's five Apple flagship stores.

Proview Technology Shenzhen holds the iPad trademark which it registered in 2001, while Apple argues it bought the name from Proview Taiwan, which is associated with, but still a separate entity from, the Shenzhen company, according to the Xinhua News Agency.

Xie Xianghui, Proview's lawyer, told the court that an immediate halt of iPad sales should be implemented in Shanghai to protect its client's ownership of the trademark.

Hu Jinnan, a lawyer with the Guangdong Shendadi Law Firm, which is representing Apple, told the court that Proview has no product and market to sell its iPad brand with.

"Apple sales in China are huge, and its fans line up to buy the iPad," Hu said. "If the court implements a ban, it will hurt Apple sales and customers' interests."

Xie told the Global Times after the four hour court proceedings that his client is not ruling out the possibility of a settlement with Apple. "Proview has the right to sue Apple Inc," he said. "But both sides can sit together and negotiate an out-of-court agreement."

He declined to elaborate on the amount of compensation Proview Technology would demand if such negotiations take place.

"We are aware that some media reports put the price tag at $20 million," Xie said. "Proview Technology is still discussing internally the terms of negotiation, and if it will place."

Gong Bohua, a law professor at Fudan University who specializes in trademark infringement cases, told the Global Times Wednesday that an out-of-court agreement is good for both Proview and Apple.

"The case proceedings will take at least a couple of weeks before a ruling is made, and Apple is likely to appeal if the court rules against it," he said. "A prolonged legal battle will hurt Apple's interests in the Chinese mainland market."

Pudong New Area People's Court did not say when the next hearing will take place, but Xie said he believed the ruling will be handed down "fairly quickly."

In Beijing, Apple was fined 240 million yuan ($38.12 million) last year for selling its iPad without permission to use the trademarked name, but the US retailer challenged the case, which has yet to be settled.

In Shenzhen, Apple also appealed an earlier ruling against it, and the Guangdong High Court is due to hear the case on February 29.