Display maker Proview stated it is prepared to begin negotiations with Apple, after the Chinese company threaten to over the use of the iPad trademark.
Proview believes that Apple - despite purchasing the iPad name in 2009 - is not allowed to use the name in China; Proview is seeking up to $2bn in damages and has already had the country's iPad stock seized.
Apple retaliated by claiming that Proview was making defamatory remarks about the Californian company and a court in Shanghai will begin hearings on Wednesday on whether Proview's claim has any merit.
Proview, which recently filed for bankruptcy, told the Times of India: "We are now preparing for negotiations. The court cases will continue until we reach an agreement."
To counter the Chinese company's claim of copyright infringement, Apple said: "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."
Despite believing that it had purchased worldwide use of the iPad trademark in 2009, Proview now claims that Apple bought this from a subsiderary company and not from Proview itself, which still retains the rights in China.
iPad stock in many Chinese shops has been seized by authorities and the tablet is currently not available on Amazon's Chinese website. Further shops have removed their iPad stock for fear of it being taken away.